01/01/26 | 3:52 pm | UPI payments

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UPI transactions rise 29% in December as digital payments momentum holds

The Unified Payments Interface (UPI) recorded a 29% year-on-year rise in transaction volumes to 21.63 billion in December, while transaction value grew 20% to Rs 27.97 lakh crore, according to data from the National Payments Corporation of India (NPCI).

On a month-on-month basis, activity remained strong. Average daily transaction value rose to Rs 90,217 crore in December from Rs 87,721 crore in November, while average daily volumes increased to 698 million from 682 million.

In November, UPI transactions had climbed 32% year-on-year to 20.47 billion, with transaction value rising 22% to Rs 26.32 lakh crore.

Transactions through the Immediate Payment Service (IMPS) also increased, with total value reaching Rs 6.62 lakh crore in December, up 10% from a year earlier and higher than Rs 6.15 lakh crore in November. IMPS transaction volumes rose to 380 million from 369 million, while average daily transaction value increased to Rs 21,269 crore from Rs 20,506 crore.

India had 709 million active UPI QR codes as of December, a 21% increase since July 2024, according to a recent report by Worldline India. Wider QR-code adoption across small retailers, transport hubs and rural markets has reinforced scan-and-pay as the dominant payment method.

Person-to-merchant transactions continued to grow faster than person-to-person payments, reflecting UPI’s expanding role in retail spending. P2M transactions rose 35% to 37.46 billion, while P2P transactions increased 29% to 21.65 billion. The average transaction size fell to Rs 1,262 from Rs 1,363, indicating greater use for low-value, everyday payments.

—IANS

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