India’s digital payments ecosystem saw remarkable growth in 2025, with the Unified Payments Interface (UPI) handling 228.5 billion transactions—a 33% increase from the previous year—according to a report by Worldline.
The total value of UPI transactions reached Rs 299.74 trillion, reinforcing its status as the primary mode of everyday payments across the country. The report, titled India Digital Payments Report – Year 2025 in Review, highlights a clear shift toward a micro-transaction economy, where digital payments are steadily replacing cash for small-value purchases in areas like local retail, transport, and daily services.
This trend is reflected in the declining average ticket size (ATS) of UPI transactions. Overall ATS dropped by 9% to Rs 1,314, while merchant transaction ATS fell to Rs 592, indicating increased use for routine, low-value payments.
UPI continues to lead across both person-to-person (P2P) and person-to-merchant (P2M) segments. Notably, P2M transactions rose 34% to 143.82 billion, underlining its growing importance in merchant payments.
Infrastructure supporting digital payments also expanded significantly. The number of UPI QR codes grew 15% year-on-year to 731.38 million, while point-of-sale (PoS) terminals increased to 11.48 million.
Meanwhile, card payments are maintaining relevance in higher-value and online transactions. Credit card usage rose 27% to 5.69 billion transactions, while debit card usage declined by 23%, suggesting that smaller payments are shifting toward UPI. Online credit card spending reached Rs 14.53 trillion, highlighting their continued role in e-commerce and premium purchases.
Recurring payments are also gaining traction. Transactions via Bharat BillPay climbed 40% to 3.05 billion, with total value surging 93% to Rs 14.84 trillion. These are increasingly used for expenses such as education fees, insurance premiums, EMIs, and subscription services—pointing to the rise of a “set-and-forget” payment model.
According to Ramesh Narasimhan, CEO of Worldline India, India’s digital payments landscape is entering a more mature phase, where rapid scale is now being complemented by better structure, with distinct roles emerging for UPI, cards, and recurring payment systems.
(With inputs from ANI)