UPI Transaction Growth 29% YoY in December as Digital Payments Deepen Across India

New Delhi: India’s Unified Payments Interface (UPI) continued its strong growth trajectory in December, recording a 29 per cent year-on-year increase in transaction volumes to 21.63 billion, while transaction value rose 20 per cent to ₹27.97 lakh crore, according to data released by the National Payments Corporation of India (NPCI).

On a month-on-month basis, UPI activity remained robust. The average daily transaction value increased to ₹90,217 crore in December from ₹87,721 crore in November, while average daily transaction volumes rose to 698 million from 682 million during the same period.

The December performance follows a strong showing in November, when UPI transactions surged 32 per cent year-on-year to 20.47 billion, with transaction value climbing 22 per cent to ₹26.32 lakh crore.

UPI Transaction Growth Driven by Strong Retail and Daily Usage

The sustained expansion in UPI usage reflects its deepening role in everyday retail spending. Person-to-merchant (P2M) transactions continued to outpace person-to-person (P2P) payments, highlighting the growing preference for digital payments at shops, service outlets and transport points.

P2M transactions rose 35 per cent year-on-year to 37.46 billion, while P2P transactions increased 29 per cent to 21.65 billion. At the same time, the average transaction size declined to ₹1,262 from ₹1,363, indicating increased usage of UPI for low-value, routine purchases such as groceries, transport fares and small retail payments.

IMPS Transactions Also Record Steady Expansion

Transactions through the Immediate Payment Service (IMPS) also showed healthy growth. Total IMPS transaction value reached ₹6.62 lakh crore in December, marking a 10 per cent increase compared to the same period last year and an improvement over ₹6.15 lakh crore recorded in November.

IMPS transaction volumes rose to 380 million from 369 million, while the average daily transaction value increased to ₹21,269 crore from ₹20,506 crore, underlining continued demand for instant fund transfer services alongside UPI.

UPI Transaction Growth Boosted by Rapid QR-Code Adoption

The expansion of digital payments has been further supported by the rapid increase in UPI QR-code adoption. According to a recent report by Worldline India, the country had 709 million active UPI QR codes as of December, reflecting a 21 per cent increase since July 2024.

Wider acceptance of QR-based payments across small retailers, transport hubs and rural markets has reinforced scan-and-pay as the dominant digital payment method. This expansion has played a key role in driving higher transaction volumes, especially in semi-urban and rural areas.

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Digital Payments Strengthen India’s Cashless Ecosystem

The latest NPCI data underscores UPI’s growing role as the backbone of India’s digital payments ecosystem. The strong growth in volumes, coupled with rising adoption among merchants and consumers, highlights how UPI is increasingly being used for frequent, low-value transactions rather than just large transfers.

As digital infrastructure expands and user familiarity deepens, UPI is expected to remain a key driver of financial inclusion and cashless payments across the country