Historic Surge in UPI Transactions
India’s digital payments ecosystem has marked a major milestone, with Unified Payments Interface (UPI) transactions touching a record high of Rs 24.77 lakh crore in March 2025. This surge represents a remarkable achievement for UPI, underscoring the growing adoption and reliance on digital payment platforms in the country. The data, released by the National Payments Corporation of India (NPCI), revealed that March was the eleventh consecutive month that UPI transactions had surpassed the Rs 20-lakh-crore mark. This indicates a sustained trend of robust growth in digital payments, highlighting the sector’s growing importance in the Indian economy.
Record high in UPI transactions at Rs 24.77 lakh crore in March 2025.
Eleventh consecutive month of transactions staying above the Rs 20-lakh-crore mark.
Strong growth in digital payment adoption across India.
Growth in Value and Volume
The value of UPI transactions in March 2025 showed a significant increase of 25 percent compared to the same month in the previous year, highlighting the rising popularity and acceptance of digital payments. In terms of volumes, the year-on-year growth was even more pronounced, with a 36 percent increase in the number of transactions. In total, 18.3 billion UPI transactions were completed during March 2025, underscoring the extensive reach of UPI across various sectors and user demographics.
Additionally, the January-March quarter saw Rs 70.2 lakh crore worth of transactions, a 24 percent increase from the same period in the previous year. This consistent growth in both value and volume speaks to the ongoing expansion of UPI as a primary mode of payment for millions of Indians.
25 percent increase in transaction value compared to March 2024.
36 percent growth in transaction volumes from the previous year.
Total transactions of 18.3 billion UPI transactions in March.
Higher Average Transaction Value
March also saw an increase in the average transaction value, which reached Rs 79,903 crore per day. This was a 1.9 percent increase from February 2025, signaling that while the number of transactions continues to grow, the average value per transaction remains strong. However, the value per transaction decreased to its lowest in eight months, at Rs 1,353.6, reflecting a shift towards smaller, more frequent transactions, a trend that has been observed across various digital payment platforms in India.
Average transaction value rose by 1.9 percent from February.
Transaction value per transaction dropped to Rs 1,353.6, a decrease not seen in eight months.
Growth in FASTag Transactions
Another noteworthy trend is the performance of FASTag, which is used for automated toll payments. While the volume of FASTag transactions decreased slightly to 379 million in March from 384 million in the previous month, the transaction value increased to Rs 6,800 crore, up from Rs 6,601 crore. This indicates that even as the volume of transactions remained relatively stable, the overall value of toll-related payments is rising, likely driven by higher toll fees or increased frequency of travel.
FASTag volume declined slightly to 379 million but transaction value rose to Rs 6,800 crore.
FASTag adoption continues to play a key role in India’s digital payments landscape.
India’s Economic Growth and Digital Payments
The surge in UPI transactions comes at a time when the Indian economy appears to be performing well, particularly in the final quarter of FY25. According to second advance estimates, India’s GDP growth is expected to exceed 7 percent for the year, with Kumbh-related spending and an uptick in government capital expenditure expected to drive the economy forward. Chief Economic Advisor V Anantha Nageswaran had earlier projected that these factors would help the economy exceed the 7 percent growth mark, further fueling optimism about the overall economic performance.
Economic growth for FY25 is projected to be over 7 percent.
Kumbh-related spending and government capex expected to contribute to economic expansion.
The Rise of Digital Payments in India
The consistent rise in UPI transactions is a reflection of the digital transformation that India is undergoing, particularly in the realm of payments. UPI has become a key enabler of cashless transactions, allowing users to transfer funds seamlessly and instantly, thus promoting a shift towards digital finance. As the government continues to incentivize digital payments and encourage financial inclusion, platforms like UPI are expected to continue experiencing growth, making them central to India’s economic future.
Digital payments continue to play a central role in India’s economic and financial systems.
UPI adoption is driving a shift toward a cashless economy in India.
As the country moves into the new financial year, the continuing expansion of UPI transactions and digital payments signals a promising future for India’s payment ecosystem, with the National Payments Corporation of India (NPCI) leading the charge. The future of digital payments in India looks bright, with UPI expected to remain at the forefront of this transformation.
