Unified Payments Interface (UPI), India’s flagship digital payments infrastructure, recorded a remarkable surge in 2025, with the average daily transaction value crossing ₹90,000 crore for the first time in August, according to a recent report published by the State Bank of India (SBI).

The report reveals that the average value of daily UPI transactions climbed from ₹75,743 crore (US$ 8.67 billion) in January to ₹90,446 crore (US$ 10.35 billion) in August, demonstrating the platform’s relentless growth and expanding user footprint.
During the same period, average daily transaction volumes surged by 127 million, reaching an all-time high of 675 million transactions per day in August.

UPI Moving Beyond P2P

While UPI initially gained popularity as an instant peer-to–peer payments tool, it has now evolved into a versatile financial platform used for:

• Retail purchases

• Bill payments

• Merchant and business transactions

• E-commerce and utility services

The wide-scale adoption has been fuelled by seamless integrations with popular digital apps and deeper penetration in both urban and rural markets.

Public Sector vs Private Sector Banks

The SBI report also sheds light on the changing dynamics within the banking sector:

The figures highlight the significant role played by public sector banks in initiating transactions, while private sector banks dominate on the beneficiary side.

State-Wise Adoption

Data from the National Payments Corporation of India (NPCI) underscores the regional reach of UPI:

Importantly, Uttar Pradesh is the only northern state in the top five, reflecting UPI’s growing penetration in tier-II and tier-III regions.

What’s Ahead?

With new innovations like:

• UPI Lite (for offline and small-ticket payments)

• Cross-border UPI linkages

• Credit on UPI (linking formal lending products to instant payment interfaces)

…the platform is set to play an even greater role in driving financial inclusion and accelerating India’s transition to a cashless economy.

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