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UPI Hits 700 Million Daily Transactions for First Time Amid Calls to Reinstate MDR

Written by: Kusum KumariUpdated on: 6 Aug 2025, 4:29 pm IST
UPI crosses 707 million daily transactions on August 2; growth doubles in 2 years. Fintechs urge MDR revival to sustain rising digital payment volumes.
UPI Hits 700 Million Daily Transactions for First Time Amid Calls to Reinstate MDR
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The Unified Payments Interface (UPI) reached a record 707 million daily transactions on August 2, 2025, according to data from the National Payments Corporation of India (NPCI). This marks a major milestone, as daily UPI transactions have doubled in just two years from around 350 million in August 2023 to 500 million in 2024, and are now crossing 700 million in 2025.

Growth Slows, But Momentum Remains Strong

While growth in daily UPI usage continues, the pace has slightly slowed compared to previous years. The Indian government aims to hit a target of 1 billion (100 crore) transactions per day, which is expected to be achieved by next year if current growth trends continue.

Industry Pushes for Return of MDR to Sustain Growth

To support the rising costs of maintaining the UPI system, fintech firms and payment associations are urging the government to reintroduce the Merchant Discount Rate (MDR), especially for large merchants and high-value transactions. MDR is a small fee, typically between 1% and 3% that was waived by the government in 2019 to promote digital payments.

However, the government slashed UPI subsidies from ₹4,500 crore in FY24 to ₹1,500 crore in FY25, making MDR reinstatement a hot topic again. RBI Governor Sanjay Malhotra recently commented that someone must bear the infrastructure costs, hinting at possible policy changes.

Read More: Dividends & Bonus Issue This Week (August 4–8, 2025): Paras Defence, Nestle, Coal India, and More.

UPI’s Growing Global and Domestic Presence

UPI now accounts for about 85% of India’s digital transactions and nearly 50% of global real-time payments. In July alone, UPI facilitated 19.5 billion transactions worth ₹25 lakh crore, averaging about 650 million daily transactions and ₹83,000 crore in value.

Conclusion

India’s UPI continues to revolutionise digital payments with record-breaking daily usage. However, for long-term sustainability, the government and regulators may need to reconsider the MDR structure and explore funding solutions to support its expanding digital infrastructure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 6, 2025, 10:55 AM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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