The transaction value on UPI reached ₹299.74 lakh crore, marking a 33% year-on-year increase.
The report highlights India’s shift toward a micro-transaction economy, where small-value digital payments are increasingly replacing cash for everyday purchases such as local retail, transport, and services.
The average ticket size (ATS) of UPI transactions fell 9% to ₹1,314, while merchant payments averaged ₹592, reflecting broader adoption among low-ticket merchants.
UPI dominates everyday payments
UPI reinforced its position as India’s default payment rail:
- Person-to-merchant (P2M) payments rose 34% to 14,382 crore transactions.
- UPI’s infrastructure expanded, with QR codes reaching 7.31 crore and PoS terminals hitting 11.48 lakh, both up 15% from 2024.
Worldline notes that the ecosystem is moving toward a “QR-first, PoS-as-needed” model, enabling even small merchants to accept digital payments with minimal hardware.
Cards and recurring payments find distinct roles
While UPI dominates small-ticket payments, credit cards continue to gain traction in high-value and online transactions:
- Credit card transactions grew 27% to 569 crore.
- Online credit card payments totaled ₹14.53 lakh crore.
- Debit card usage fell 23%, reflecting migration of smaller payments to UPI.
Meanwhile, recurring digital payments surged as households embraced automated billing:
- Bharat BillPay processed 305 crore transactions, up 40% year-on-year.
- Transaction value on Bharat BillPay almost doubled, reaching ₹14.84 lakh crore.
Ramesh Narasimhan, CEO of Worldline India, said, “India’s digital payments ecosystem is entering a new phase of maturity, where scale is being complemented by structure. Distinct roles are emerging across UPI, cards, and recurring payment platforms, supported by a rapidly expanding acceptance infrastructure.”