UPI Transactions Average ₹90,446 Crore Daily In August; SBI Leads As Top Remitter

Unified Payments Interface (UPI) transactions have surged in 2025, with the daily average value rising from ₹75,743 crore in January to ₹90,446 crore in August, according to a report by SBI Research released on Monday.

The State Bank of India (SBI) emerged as the top remitter member, accounting for 5.2 billion transactions during the period.

By geography, Maharashtra continues to dominate the digital payments landscape, contributing 9.8 per cent of total transactions in July. It was followed by Karnataka (5.5 per cent) and Uttar Pradesh (5.3 per cent).

The report highlighted the rapid rise of peer-to-merchant (P2M) payments, whose share of transaction value increased from 13 per cent in June 2020 to 29 per cent in July 2025.

In terms of volume, P2M transactions now account for 64 per cent, up from 39 per cent five years ago, reflecting both robust adoption and greater financial inclusion.

Digital Payments Outpace Cash

UPI-led digital transactions have outstripped the growth of cash in circulation (CIC). Between April and July 2025, monthly average UPI transactions stood at ₹24,554 billion, compared with CIC’s monthly growth of ₹193 billion.

The shift in consumer behaviour is even more evident in retail money demand.

UPI’s share of combined retail transactions (UPI plus debit card ATM withdrawals) rose from 40 per cent in November 2019 to 62 per cent in January 2021 and an overwhelming 91 per cent in May 2025.

The SBI Research report noted, “This clearly shows that UPI is replacing cash.”

The National Payments Corporation of India (NPCI) defined nearly 300 merchant category codes (MCCs) but currently reports only 29 major categories. SBI Research suggested expanding coverage to at least 100 MCCs for more accurate insights.

The top 15 merchant categories accounted for 70 per cent of transactions by volume and 47 per cent by value in July 2025. Groceries dominated by transaction count, representing 24.3 per cent of volumes but just 8.8 per cent in value.

Meanwhile, debt collection agencies accounted for 12.8 per cent of transaction value but only 1.3 per cent of volume. Their transaction value rose from ₹80,789 crore in April 2025 to ₹93,857 crore in July 2025, even as average ticket size slipped slightly from ₹5,952 to ₹5,817.

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