India’s UPI Volumes Rise 34% in Q3 2025; QR code Base Hits 709 Million

India’s digital payments usage continued to rise in the July-September quarter, with Unified Payments Interface (UPI) transaction volumes increasing 34% year-on-year, data from Worldline India showed.  

Growth in volumes coincided with a wider acceptance network, as the number of active QR codes across the country crossed 709 million. 

Transaction Volumes and Value 

UPI handled 59.33 billion transactions during the quarter, up from 44.44 billion in the same period last year.  

The total value of these transactions rose 21% year-on-year to ₹74.84 trillion. The slower growth in value compared with volumes points to rising use of UPI for smaller, routine payments. 

Merchant Payments Gain Share 

Person-to-merchant (P2M) transactions remained the largest contributor to overall growth. P2M volumes increased 35% year-on-year to 37.46 billion transactions.  

Person-to-person (P2P) transfers grew 29% to 21.65 billion transactions. The data shows a continued shift towards UPI being used for retail and service payments. 

Decline in Average Ticket Size 

The average value of a UPI transaction fell to ₹1,262 from ₹1,363 a year earlier. The decline shows higher transaction frequency for low-value payments, including transport fares, food services, healthcare expenses, and other local purchases. 

Growth in Acceptance Infrastructure 

Active UPI QR codes rose 21% year-on-year to 709 million. Adoption increased across small retailers, pharmacies, transport locations and smaller towns.  

Physical acceptance infrastructure also expanded, with point-of-sale terminals growing 35% year-on-year to 12.12 million units.  

Bharat QR transaction volumes stood at 6.10 million, with merchant acquisition largely driven by private banks, which accounted for about 84% of total deployments. 

Card Payment Trends 

Cards continued to be used for higher-value transactions. Credit card issuance rose 35% year-on-year to 113.39 million, while debit cards stood at 1.02 billion and prepaid cards at 470.1 million.  

Credit card transaction volumes increased 26% to 1.45 billion, with transaction value reaching ₹4.08 trillion. Debit card usage declined 25%, reflecting a shift of smaller payments to UPI. 

Read More: Provident Fund ATM UPI Withdrawal: 75% EPF Accessible via ATM before March 2026! 

Conclusion 

Worldline India’s data indicates sustained growth in UPI usage during Q3, supported by QR adoption and increased merchant payments, while card-based payments retained relevance for larger-value spending.