UPI Dominates Digital Payments, Hits 84% Share in FY25

Unified Payments Interface (UPI) has recorded sharp growth since its launch in 2016. Transaction volumes rose from just 2 crore in 2016-17 to 18,586 crore in 2024-25. As per the news reports, the rise has been consistent year after year, with notable acceleration after 2020.

Transaction Value Growth

The value of UPI transactions has increased from ₹1 lakh crore in 2017-18 to ₹261 lakh crore in 2024-25. In 2018-19, the total value stood at ₹9 lakh crore, which more than doubled to ₹21 lakh crore in 2019-20. By FY22, the figure had crossed ₹84 lakh crore, and further reached ₹200 lakh crore in 2023-24.

Average Ticket Size

The average ticket size has gradually come down as UPI transactions became common for everyday use. In 2016-17, the average was ₹3,867, falling to ₹1,200 in 2017-18. Since then, it has remained in the range of ₹1,400-₹1,800, with ₹1,404 recorded in FY25.

Share in Digital Payments

UPI’s share in overall digital payment volumes has steadily expanded. From 6% in 2017-18, it rose to 23% in 2018-19, 51% in 2020-21, and crossed 80% in 2023-24. In FY25, it accounted for 84% of all digital transactions. In terms of value, UPI contributed 9% in 2024-25, compared with only 1% in 2018-19.

Post-COVID Acceleration

The growth in volumes was particularly sharp after the COVID-19 period. Transactions increased from 1,252 crore in 2019-20 to 2,233 crore in 2020-21, almost doubling in a year. The upward trend continued, crossing 13,000 crore in 2023-24.

A recent Reserve Bank of India study noted that higher adoption of UPI has been linked with lower demand for cash across both national and state levels.

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Conclusion

In less than a decade, UPI has grown from negligible levels to accounting for most digital transactions in India. Its rising volumes and expanding reach underline the role of UPI in the country’s payment system.

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