Following the Cabinet decision today, the government is set to rollout an incentive scheme for promotion of low-value BHIM-UPI P2m (Person to Merchant) transactions - for buying goods or services. To be implemented at an estimated outlay of Rs 1,500 crore for the year 2024-25 (From April 1, 2024 to March 31, 2025), the scheme is targeted at promoting low-value transactions of up to Rs 2,000/- in which small merchants will get an incentive of 0.15 per cent of the transaction value. With this, the Government aims to close the year 2024-25 with a transaction volume of 20,000 crore. The scheme will help penetration of UPI in tier 3 to tier 6 markets, especially in rural and remote areas.
India’s Unified Payments Interface (UPI) has shattered records yet again, clocking an unprecedented 17 billion (1700 crore) 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 (1673 crore) transactions and Rs. 23.25 lakh crore.
However, in February 2025, the number of transactions has come down marginally to 16.10 billion (1600 crore) with a value of over Rs 21.95 lakh crore.
In the whole of 2024, the volume increased by 46 per cent to around 172 billion - which is 17,200 crore - transactions against 118 (11,800 crore) transactions in 2023. In value terms, transactions increased by 35 per cent to around Rs 247 trillion (Rs 247 lakh crore) during the calendar year 2024, compared with Rs 183 trillion (Rs 183 lakh crore) in 2023.
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.
In the world, there are seven countries - Singapore, France, UAE, Sri Lanka, Bhutan, Nepal and Mauritius - that use our UPI system.
The trend that P2M transactions outpace peer-to-peer (P2P) payments, signals a shift towards 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.