UPI transactions have grown significantly, with the average daily value rising from Rs 75,743 crore in January to Rs 90,446 crore in August. SBI emerged as the top bank for UPI payments, processing 5.2 billion transactions. Maharashtra continues to lead in digital payments, holding a 9.8% share in July, followed by Karnataka at 5.5% and Uttar Pradesh at 5.3%, according to SBI Research. The share of payments from people to merchants (P2M) has also grown, increasing from just 13% of total transaction value in June 2020 to 29% in July 2025.
The share of digital payments in total transactions has grown from 39% to 64%, showing strong growth and wider use of digital payments. UPI payments are increasing much faster than cash in circulation, with monthly UPI transactions averaging Rs 24,554 billion, compared to a monthly cash growth of just Rs 193 billion between April and July 2025. In retail money use, which includes UPI and ATM withdrawals, UPI’s share rose from 40% in November 2019 to 62% in January 2021, and reached 91% in May 2025, indicating that people are increasingly using UPI instead of cash. There are nearly 300 major merchant categories, but NPCI started tracking only 29. The report suggests that NPCI should provide data for at least 100 major categories.
In July 2025, the top 15 merchant categories accounted for 70% of all transactions and 47% of the total transaction value. Grocery payments made up 24.3% of the transactions but contributed only 8.8% of the value. In contrast, debt collection agencies represented 12.8% of the total transaction value but only 1.3% of the total number of transactions.
“The debt collection agencies category transaction value has increased to Rs 93,857 crore in July 2025 from Rs 80,789 in April 2025, while the ticket size has declined to Rs 5,817 from Rs 5,952,” the report mentioned.
