India’s Unified Payments Interface (UPI) continued to lead the country’s digital payments revolution in 2025, clocking a 35% year-on-year rise in transaction volume to 106.36 billion during the first half (H1) of 2025, according to Worldline’s India Digital Payments Report released on Wednesday.
The total transaction value soared to an impressive Rs 143.34 lakh crore, reflecting the growing dominance of digital payments in everyday Indian life.
UPI and the ‘Kirana Effect’
The report highlighted that the average UPI transaction size dropped from Rs 1,478 in H1 2024 to Rs 1,348 in H1 2025, indicating increased usage for small, everyday purchases — from tea stalls and grocery stores to e-commerce platforms.
Person-to-merchant (P2M) transactions rose sharply by 37% to 67.01 billion, driven by the so-called “Kirana Effect,” where small and micro businesses continue to anchor India’s digital economy.
Merchant and Payment Infrastructure Growth
India’s QR-based payment network more than doubled to 678 million by June 2025, marking a 111% increase from January 2024.
- Point-of-Sale (PoS) terminals grew 29% to 11.2 million.
- Bharat QR touched 6.72 million installations.
According to Worldline, these numbers make India the largest merchant network in the world, powered by small business adoption and government-led inclusion initiatives such as Digital India and PM SVANidhi.
Credit and Debit Card Trends
The number of active credit cards grew 23% between January 2024 and June 2025, with monthly spending crossing Rs 2.2 trillion.
While the average transaction size fell 6%, credit cards are increasingly being used for everyday retail and lifestyle purchases rather than only high-value transactions.
In contrast, debit card usage at PoS fell 8%, as smaller payments continued to migrate to UPI.
Mobile Payments Continue to Dominate
Mobile payments remained India’s preferred mode of digital transaction, growing 30% year-on-year to 98.9 billion transactions worth Rs 209.7 trillion.
Worldline’s report reaffirmed that India’s digital payment ecosystem—driven by UPI’s accessibility, merchant integration, and smartphone penetration—continues to evolve as a global benchmark for real-time payments infrastructure.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice.
