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Highlights
Unified Payments Interface Achieves Remarkable 20 Billion Transactions Milestone
The Unified Payments Interface (UPI) has marked a significant achievement as it processed 20.01 billion transactions in August 2025, reaching this unprecedented milestone for the first time. In terms of financial worth, UPI transactions totalled Rs 24.85 lakh crore during this month. This achievement follows a period of steady growth over recent months. In June 2025, UPI recorded 18.40 billion transactions valued at Rs 24.04 lakh crore. The subsequent month, July, experienced a notable rise to 19.47 billion transactions, which is a 5.8% increase from June, with the transactional value climbing to Rs 25.08 lakh crore.
August’s Transaction Growth
In August, UPI transactions surpassed the 20 billion threshold, reflecting a 2.8% rise compared to July. Even though the overall value dipped by 0.9% from the previous month, it remained significantly higher than levels seen in June. Year-over-year comparisons reveal that UPI transaction volumes increased by 34%, while the total value of transactions surged by 21% in August. The average number of daily transactions reached 645 million, with the daily financial worth at Rs 80,177 crore. UPI also achieved a remarkable record of exceeding 700 million transactions in a single day on August 2.
Impact of Regulatory Changes
This growth surge occurred despite the prohibition on real money gaming platforms, which previously constituted a considerable proportion of UPI transactions. Many of these platforms began shutting down following the passage of the Promotion and Regulation of Online Gaming Bill, 2025 by Parliament on August 21.
The consistent increase from 18.40 billion transactions in June to 20.01 billion in August highlights UPI’s crucial role in day-to-day payments, ranging from peer-to-peer transfers to merchant transactions, solidifying its status as the backbone of India’s digital payments landscape. As of July, PhonePe managed a substantial 8.93 billion transactions, representing a commanding 45.88% market share by volume, followed by Google Pay with 6.92 billion transactions, accounting for 35.56%. In relation to the total transaction value of Rs 25,08,498.09 crore, PhonePe captured 48.64%, while Google Pay contributed 35.53%.
Merchant Category Breakdown
In terms of merchant categories, groceries and supermarkets led UPI transactions with a volume of 3.03 billion (3,032 million) and a value of Rs 64,882 crore, followed by fast food with 1.22 billion and restaurants with 1.15 billion transactions. Digital goods and games, including real money gaming, recorded 351.24 million transactions worth Rs 10,076 crore. The breakdown of data for August remains to be published by the NPCI.
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