UPI Transactions Surge in India: A 33.5% Increase in Q3 2025

Significant Growth in UPI Transactions

Mumbai, Dec 18: The volume of transactions via the Unified Payments Interface (UPI) saw a remarkable increase of 33.5% year-on-year, reaching 59.33 billion transactions during the July to September period. The total transaction value also rose by 21%, amounting to Rs 74.84 lakh crore, according to a recent report.

As of July 2024, India has achieved 709 million active UPI QR codes, reflecting a 21% growth. The widespread acceptance of QR codes in various sectors, including kirana stores, pharmacies, transportation hubs, and rural markets, has established scan-and-pay as the preferred payment method across the country, as highlighted by Worldline India.

Transactions from person-to-merchant (P2M) have continued to surpass person-to-person (P2P) transactions, showcasing UPI's stronghold in daily retail payments.

P2M transactions increased by 35% to 37.46 billion, while P2P transactions grew by 29% to 21.65 billion, according to the report.

The third quarter of 2025 further solidified India's status as the leading real-time payments economy globally, where each scan, tap, and click is transforming consumer and merchant interactions.

The average transaction size has decreased to Rs 1,262 from Rs 1,363, indicating a rise in micro-transactions related to mobility, food, healthcare necessities, and hyperlocal commerce.

The number of point-of-sale (PoS) terminals surged by 35% to 12.12 million from July 2024 to July 2025. Bharat QR saw a slight decline to 6.10 million as UPI QR codes gained dominance.

Private banks led the way in acceptance deployment, holding an impressive 84% market share. Credit card issuance rose by 8% year-on-year, totaling 113.39 million cards, while debit cards reached 1.02 billion and prepaid cards numbered 470.1 million.

Credit card transactions increased by 26% to 1.45 billion, with a transaction value of Rs 6.07 lakh crore. Conversely, debit card transactions fell by 22%, reflecting a shift of low-ticket spending towards UPI, as noted in the report.

Mobile and tap-based payments have continued to gain traction, with contactless payment adoption accelerating in metropolitan areas, mobility services, and quick-service retail outlets.

“Looking ahead to Q4 2025 and early 2026, we anticipate rapid innovation and deeper integration within the ecosystem. Interoperable QR codes are expected to transition from pilot phases to regular use in mobility, healthcare, fuel stations, and public utilities, providing a seamless scan-and-pay experience,” the report stated.