India’s Unified Payments Interface (UPI) has shattered records yet again, clocking an unprecedented 17 billion transactions worth exceeding Rs 23.5 lakh crore in January 2025, according to the latest data released by the National Payments Corporation of India (NPCI). This marks a significant milestone for the digital payment system, reflecting over 8 per cent surge in volume and 9 per cent increase in value compared to December 2024’s figures of 16.73 billion transactions and Rs. 23.25 lakh crore.
The remarkable growth in January underscores UPI’s deepening penetration across India’s urban and rural landscapes, fueled by festive spending, increased merchant adoption, and the seamless integration of new features like UPI Tap & Pay and voice-enabled payments under Hello! UPI. The average daily transaction count reached 55.4 crore, up from 53.96 crore in December, while the daily transaction value climbed to Rs. 80,000 crore from Rs. 74,990 crore, highlighting a robust start to the year.
NPCI officials attribute this surge to a combination of factors, including the expansion of UPI’s global footprint - now accepted in seven countries - and growing trust in digital payments among small businesses and consumers. “January’s numbers reflect the transformative power of UPI in making financial transactions faster, safer, and more inclusive,” an NPCI spokesperson said. The State Bank of India, HDFC Bank, and YES Bank remained the top remitter and beneficiary banks, processing a significant share of the transactions.
The record-breaking figures come just ahead of a key regulatory deadline: starting February 1, 2025, UPI transaction IDs must be strictly alphanumeric, banning special characters to enhance security and standardisation. While most users and apps have adapted, some last-minute adjustments may have spurred additional transaction activity as businesses and individuals updated their systems.
Analysts note that January’s performance builds on UPI’s stellar 2024, which saw 17.2 crore transactions worth Rs. 247 lakh crore, a 46 per cent jump in volume from 2023. The rise in person-to-merchant (P2M) transactions, now outpacing peer-to-peer (P2P) payments, signals a shift toward broader commercial use, from street vendors to e-commerce platforms. PhonePe and Google Pay continue to dominate, accounting for over 85 per cent of UPI volumes, though NPCI’s recent extension of volume cap guidelines to December 2026 offers breathing room for market competition.
As India cements its position as a global leader in digital payments, handling nearly half the world’s digital transaction volume, the January 2025 figures spotlight UPI’s unstoppable momentum. With innovations on the horizon and a target of 1 billion daily transactions within five years, the platform’s record-breaking streak seems poised to continue.