India’s UPI sets new record with over 20 billion transactions in August 2025
India’s popular digital payment system, the Unified Payments Interface (UPI), hit a huge milestone in August 2025 — handling over 20 billion transactions in just one month. This impressive growth is mainly thanks to festive shopping, new technology upgrades, and supportive government policies.
According to a recent report, UPI transactions jumped 34% compared to last year, and there was a 3% increase from July. The festive season encouraged more people to use digital payments, helping businesses and consumers shop and pay more easily.
The Indian government and the Reserve Bank of India (RBI) have played a big role in this growth. They’ve rolled out incentives, supportive regulations, and new features like UPI credit and better app compatibility. These measures made digital payments more accessible and convenient for everyone.
In August, UPI processed a staggering Rs 24.85 lakh crore — roughly $281 billion — with an average of 645 million transactions daily. That’s a massive contribution to India’s economy, showing how deeply digital payments are now woven into everyday life.
India’s large internet and smartphone user base—over 900 million internet users and at least 500 million smartphone owners—has made UPI available even in smaller cities and rural areas. This has helped spread cashless payments across the country.
Other payment systems like FASTag and Aadhaar Enabled Payment System (AePS) also grew in August. FASTag, used for toll payments, rose by 3%, while AePS, which helps people in rural areas transfer money using Aadhaar, saw a 24% increase, reaching over 128 million transactions.
The National Payments Corporation of India (NPCI) has made it easier to use different apps together. Today, you can transfer money instantly between apps like PhonePe and Google Pay using UPI IDs or QR codes. This interoperability makes digital payments smoother and more accessible.
More sectors are adopting UPI — from utility bills and e-commerce to transportation and small shops. Its widespread acceptance shows how important digital payments have become for both small daily transactions and big business deals.
Thanks to initiatives like Digital India and the RBI’s new features like UPI Lite for low-value payments, more people are using cashless options than ever before. UPI now makes up about 85% of all digital transactions in India and accounts for nearly half of all real-time payments worldwide.
Interestingly, UPI is not just thriving in India. It’s making its mark internationally too, with live operations now in seven countries — including France in 2025 — highlighting its global influence and growing popularity.
Overall, UPI’s rapid growth and international expansion show how India is leading the way in digital payments, making everyday transactions faster, safer, and more convenient for millions of users.
