Unified Payments Interface (UPI) transactions surge in 2025, daily average value crosses Rs. 90,000 crore (US$ 10.3 billion) in August: Report

Unified Payments Interface (UPI) continues to demonstrate robust growth in 2025, solidifying its role as the cornerstone of India’s digital payments ecosystem. A recent report by the State Bank of India (SBI) highlights that average daily transaction values rose steadily from Rs. 75,743 crore (US$ 8.67 billion) in January 2025 to Rs. 90,446 crore (US$ 10.35 billion) in August 2025. Alongside this, average daily transaction volumes surged by 127 million during the same period, reaching 675 million in August. This significant increase reflects UPI’s deepening penetration across urban and rural markets, facilitated by seamless integration with multiple apps and services. UPI is no longer limited to peer-to-peer transfers but is now widely used for retail purchases, bill payments, and business transactions, showcasing its versatility as a financial tool for individuals and enterprises alike.
The report also highlights the shifting dynamics within the banking sector. SBI emerged as the top remitter member with 5.2 billion transactions, more than three times the second largest, underscoring the strong role of public sector banks in driving payment flows. Conversely, private sector banks led on the beneficiary side, with Yes Bank topping the chart by handling nearly eight billion transactions. The National Payments Corporation of India (NPCI) further revealed state-level adoption data, with Maharashtra contributing 9.8% of total transactions in July, followed by Karnataka at 5.5% and Uttar Pradesh at 5.3%, the only northern state in the top five. These figures underline the expanding reach of UPI beyond metropolitan regions into tier-II and tier-III cities. With innovations like UPI Lite, cross-border linkages, and credit on UPI on the horizon, the platform is poised to strengthen its role as a driver of financial inclusion and India’s transition towards a cashless economy. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.