While UPI dominates everyday payments, credit cards are gaining in high-value transactions, and platforms like Bharat BillPay are driving growth in recurring payments.
| Photo Credit:
ALLEN EGENUSE J/THE HINDU
India’s digital payments ecosystem has witnessed a transformative year, with the Unified Payments Interface (UPI) processing a staggering 228.5 billion transactions in 2025, marking a 33% year-on-year increase, according to a report by Worldline. The total transaction value reached Rs 299.74 trillion, solidifying UPI’s position as the default payment method for everyday commerce in India, according to Worldline’s annual report, “India Digital Payments Report – Year 2025 in Review”.
UPI cements dominance in everyday payments
The report highlights India’s transition to a micro-transaction economy, where digital payments are replacing small-value cash purchases across categories, from neighbourhood retail to transport and everyday services.
The average ticket size (ATS) of UPI transactions continued to decline, indicating growing use for everyday purchases. Overall, UPI ATS fell 9% to Rs. 1,314, while merchant payments ATS dropped to Rs. 592, reflecting the digitisation of small-ticket purchases.
Rise of micro-transactions reshapes payment behaviour
UPI continues to dominate India’s payments landscape, with strong growth in both person-to-person (P2P) and person-to-merchant (P2M) transactions. P2M payments rose 34% to 143.82 billion, indicating UPI’s growing role in merchant payments.
Merchant acceptance infrastructure expanded significantly, with UPI QR codes increasing to 731.38 million, up 15% year-on-year, and PoS terminals growing to 11.48 million, also rising 15% from the previous year, according to the report.
Infrastructure expansion boosts adoption
While UPI dominates everyday payments, card usage continues to grow in high-value and online commerce. Credit card transactions increased 27% to 5.69 billion, while debit card volumes declined 23%, reflecting migration of small-value transactions to UPI, the report said. Online credit card payments reached Rs 14.53 trillion, reinforcing cards’ role in e-commerce and premium purchases.
Recurring payments gain traction across sectors
Recurring digital payments are gaining momentum, with transactions on Bharat BillPay reaching 3.05 billion in 2025, up 40% year-on-year, and Rs 14.84 trillion in value, representing a 93% increase.
The platform is seeing strong adoption across categories such as education fees, insurance payments, EMI repayments, and subscription services, signalling the rise of a “set-and-forget” digital payments model.
Ramesh Narasimhan, Chief Executive Officer, Worldline India, said, “India’s digital payments ecosystem is entering a new phase of maturity, where scale is being complemented by structure. As highlighted in our latest report, we are seeing distinct roles emerge across UPI, cards, and recurring payment platforms, supported by a rapidly expanding acceptance infrastructure.”
Published on April 14, 2026
