UPI Crosses 20 Billion Transactions in August, Sets New Record
- UPI crosses 20 billion transactions in August for the first time, up 34% year-on-year.
- Transaction value hits Rs 24.85 lakh crore, with average daily transactions at 645 million.
- P2M transactions and digital payments grow strongly, with groceries and debt collection among top merchant categories.
In a landmark achievement, the Unified Payments Interface (UPI) crossed 20 billion transactions in August for the first time, according to data from the National Payments Corporation of India (NPCI) released on Monday.
UPI transactions in August reached 20.01 billion, marking a 2.8% rise from July’s 19.47 billion transactions. On a year-on-year basis, this represents a 34% increase. In terms of value, UPI transactions during the month were worth Rs 24.85 lakh crore, up 24% compared to August last year.
The average daily transaction count also rose to 645 million in August, up from 628 million in July, while the daily transaction value stood at Rs 80,177 crore. Earlier, UPI had set a record by crossing 700 million transactions in a single day on August 2.
This growth comes amid a steady rise in digital payments over recent months, despite challenges such as the ban on real money gaming platforms. For context, UPI transactions in June were 18.40 billion worth Rs 24.04 lakh crore, which jumped to 19.47 billion in July, a 5.8% increase, with transaction value climbing to Rs 25.08 lakh crore.
According to SBI Research, Maharashtra continues to lead in digital payments, accounting for 9.8% share in July, followed by Karnataka (5.5%) and Uttar Pradesh (5.3%). The report also noted a steady increase in peer-to-merchant (P2M) transactions: from 13% of total value in June 2020 to 29% in July 2025, while volume share rose from 39% to 64% in the same period, highlighting strong growth in digital payments and financial inclusion.
The report further highlighted that digital payments are growing far faster than cash in circulation (CIC). The monthly average value of UPI transactions is Rs 24,554 billion, while CIC monthly growth is only Rs 193 billion from April to July 2025.
UPI covers almost 300 major merchant categories, although NPCI initially started with 29. The top 15 merchant categories account for 70% of transaction volume and 47% of value in July 2025. Groceries contributed 24.3% of transactions and 8.8% of value, while debt collection agencies accounted for 12.8% of value but only 1.3% of volume, indicating diverse adoption across sectors.
The milestone underscores India’s growing digital payment ecosystem, driven by increasing smartphone adoption, internet penetration, and wider acceptance among merchants and consumers across the country.
