UPI QR Codes Surge 91.5% In FY25; Credit Card Growth Slows

India’s digital payments landscape has experienced significant shifts in the financial year 2024–25, with Unified Payments Interface (UPI) QR codes leading the growth, while credit card expansion has decelerated.

UPI QR Codes Lead Digital Payment Growth

According to the Reserve Bank of India (RBI), the number of UPI QR codes increased by 91.5% year-on-year, reaching 657.9 million by March 2025.

This surge reflects the widespread adoption of UPI-enabled platforms such as Google Pay, Paytm, and PhonePe.

The number of banks participating in UPI also rose to 668 in April 2025, further enhancing the accessibility of digital payments across the country.

Credit Card Growth Slows Amid Regulatory Changes

In contrast, credit card growth has moderated. The year-on-year growth rate for credit card transactions fell to 7.94% in FY25, down from higher rates in previous years.

This slowdown is attributed to stricter lending norms imposed by the RBI to curb rising delinquencies and manage credit risk. Additionally, the total number of credit cards in circulation increased by 10.4% year-on-year, reaching 108.87 million by December 2024.

Debit Card Growth Remains Modest

Debit card adoption has remained relatively stable, with a 2.7% increase in the number of debit cards, totalling 991 million by March 2025.

This modest growth indicates a plateau in debit card usage, possibly due to the increasing preference for UPI-based transactions.

UPI Dominates Digital Transactions

UPI has solidified its position as the dominant method for digital transactions in India. In FY24, UPI accounted for 79.7% of the total digital payment volume, up from 73.4% in FY23.

This growth underscores the effectiveness of initiatives like the RBI’s ‘Har Payment Digital’ campaign, which aims to promote digital literacy and payment adoption across the nation.

Future Outlook

The RBI plans to enhance UPI’s convenience and adoption by allowing flexible transaction limits for in-person merchant payments.

As digital payment infrastructure continues to expand, UPI is poised to play an even more central role in India’s financial ecosystem.

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