In a major milestone for India’s digital economy, the Unified Payments Interface (UPI) recorded over 20 billion transactions in August 2025, its highest-ever monthly volume since launch, according to data released by the National Payments Corporation of India (NPCI).
The surge marks a 34% year-on-year growth in transaction count and reflects the deepening role of UPI in everyday financial life. In value terms, UPI clocked transactions worth ₹24.85 lakh crore, registering a 24% jump compared to last year.
Daily Volumes on the Rise
The month saw an average of 645 million daily transactions, up from 628 million in July. Daily transaction value stood at ₹80,177 crore. Earlier in August, UPI also set another record by crossing 700 million transactions in a single day.
This growth comes even as regulators tightened rules around online real-money gaming, underscoring UPI’s resilience and widespread adoption across sectors.
Consistent Growth Over Months
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June 2025: 18.40 billion transactions (₹24.04 lakh crore)
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July 2025: 19.47 billion transactions (₹25.08 lakh crore)
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August 2025: 20.01 billion transactions (₹24.85 lakh crore)
Despite slight variations in transaction value, the steady climb in volumes demonstrates India’s strong digital payments momentum.
State and Merchant Trends
According to SBI Research, Maharashtra continues to lead digital payments with a 9.8% share, followed by Karnataka (5.5%) and Uttar Pradesh (5.3%).
The report also shows that peer-to-merchant (P2M) payments have rapidly expanded:
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Volume share rose from 39% in June 2020 to 64% in July 2025.
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Value share increased from 13% to 29% in the same period.
Groceries alone account for 24.3% of UPI transactions by volume, while debt collection agencies dominate in value terms with 12.8% share.
Calling the milestone “more than just a number,” Akash Sinha, CEO of Cashfree Payments, said UPI has become the “rail on which India’s economy moves forward.”
Mohit Bedi, Co-founder of Kiwi, echoed the sentiment, saying UPI has “become the default mode of payments for both businesses and consumers in India.”
