UPI transactions have grown significantly, with the average daily value increasing from Rs 75,743 crore in January to Rs 90,446 crore in August, with SBI being the top remitter member with 5.2 billion transactions, according to a report released on Monday.

With 9.8% of the market in July alone, Maharashtra continues to lead the way in digital payments, followed by Karnataka (5.5%) and Uttar Pradesh (5.3%), according to SBI Research.

Key Highlights

• UPI daily transactions average ₹90,446 crore in August 2025; SBI leads as top remitter.
• SBI processes over 5,200 crore UPI transactions, maintaining leadership in India's digital payment landscape.

"The share of peer-to-merchant (P2M) transactions in total value transactions has grown from 13% in June 2020 to 29% in July 2025. During the same period, the volume share increased from 39 to 64 percent, indicating strong growth in digital payments and financial inclusion, according to the report.

Digital payments, led by UPI, are rapidly increasing, far outpacing cash in circulation (CIC). During April-July 2025, the monthly average UPI transaction is Rs 24,554 billion, with a monthly average CIC growth of Rs 193 billion.

In the retail demand for money (UPI+ATM withdrawal using debit cards), the share of UPI in value has increased from 40% in November 2019 to 62% in January 2021 and 91% in May 2025. This clearly shows that people are replacing cash with UPI.

Also Read: New UPI Rules: How They Affect Your Daily Transactions?

There are nearly 300 major merchant category codes, and NPCI began with only 29 major MCCs. "While NPCI has done an admirable job, we believe that data for at least 100 major MCCs should be provided by NPCI," the report stated.

The top 15 merchant categories account for 70% of volume and 47% of value in July 2025. Grocery stores account for 24.3% of transactions and 8.8% of value, while debt collection agencies account for 12.8% of value but only 1.3% of volume.

"The debt collection agencies category transaction value increased to Rs 93,857 crore in July 2025 from Rs 80,789 in April 2025, while the ticket size decreased to Rs 5,817 from Rs 5,952," according to the report.