UPI Transactions Surge 35% in H1 2025, Hit ₹143 Lakh Crore
India’s digital payment revolution continues to accelerate, with Unified Payments Interface (UPI) transactions reaching 106.36 billion in the first half of 2025 – a massive 35% year-on-year increase. The total transaction value stood at an impressive ₹143.34 lakh crore, according to Worldline’s India Digital Payments Report (1H 2025).
Key Takeaways
- UPI transactions grew 35% YoY to 106.36 billion in H1 2025
- Transaction value reached ₹143.34 lakh crore
- Average transaction size declined to ₹1,348, indicating increased small-value usage
- India now operates the world’s largest merchant network
Small Transactions Drive UPI Growth
The average UPI transaction size fell from ₹1,478 in H1 2024 to ₹1,348 in H1 2025, showing people are increasingly using UPI for daily small purchases at tea stalls, grocery stores, and online shopping platforms.
Kirana Effect Powers Merchant Adoption
Person-to-merchant (P2M) transactions grew 37% to 67.01 billion, driven by what Worldline calls the “Kirana Effect” – where small and micro businesses have become the backbone of India’s digital economy.
QR Code Network Expands Rapidly
India’s QR-based payment network more than doubled to 678 million by June 2025, marking a 111% rise from January 2024. The number of Point-of-Sale (PoS) terminals grew 29% to 11.2 million, while Bharat QR touched 6.72 million.
Credit Cards Shift to Premium Spending
Meanwhile, credit cards are evolving into premium spending tools. Active credit cards grew 23% between January 2024 and June 2025, with monthly spending crossing ₹2.2 trillion. Although the average transaction size fell by 6%, it indicates credit cards are increasingly used for everyday purchases.
Mobile Payments Dominate Daily Transactions
Mobile payments remained the most preferred mode for daily transactions, growing 30% year-on-year to 98.9 billion transactions worth ₹209.7 trillion. In contrast, debit card usage at PoS fell nearly 8% as smaller payments shifted to UPI.
