Over the past decade, India's financial landscape has undergone a quiet revolution, powered by the simple scan of a QR code. The Unified Payments Interface (UPI), which completes ten years in the market in April, has fundamentally altered how hundreds of millions of Indians transact every day. A detailed analysis by Mint of data from the National Payments Corporation of India (NPCI) reveals the stunning scale of this shift and how micro-payments for everyday items are at the heart of UPI's story.
The Meteoric Rise of a Payment Giant
In November 2025, an astounding average of over 636 million UPI transactions, worth nearly ₹82,000 crore, were processed daily. This volume has been climbing consistently each month. Looking back over the last five years, the growth is even more dramatic: the average daily value of UPI transactions has multiplied six times, while the volume has exploded eight-fold. This makes UPI the undisputed champion of payment channels in India, processing about 20 billion transactions monthly—nearly double the figure from earlier this year. No other major payment method comes close to this scale.
In terms of the total value of money moved, UPI now stands second only to the National Electronic Funds Transfer (NEFT) system. However, UPI's trajectory is far steeper. Since the start of the pandemic, while NEFT payments have doubled, UPI has skyrocketed 12 times, marking the largest jump among all major payment categories and easily outpacing credit and debit cards.
This phenomenal growth is built on the back of small-ticket, high-frequency payments. Consequently, the average value of a UPI transaction has halved since its early years and now stands at just around ₹1,300, a figure that continues to decline. Yet, the average Indian's monthly UPI spend is rising. In November 2025, it reached approximately ₹17,400, or ₹580 per day, reflecting a 14% increase from the previous year.
Groceries, Meals, and Gold: The New UPI Habits
The Mint analysis, which examined payments to businesses categorized by official merchant codes, shows that everyday consumption drives UPI's volume. The categories "groceries and supermarkets" and "department stores" consistently rank at the top. The data offers a clear hint of rising popularity: for every 100 Indians, a remarkable 205 UPI transactions were made at these stores in 2025 so far. This is a 34% jump from last year and a staggering 6.4 times the level seen in 2022.
The average transaction value at these stores is now ₹233, half of what it was in 2022, confirming that people are making more frequent but smaller-value payments. Similar trends are visible in other daily-need categories like pharmacies.
Eating out has also been transformed by UPI. The average transaction size for restaurants and fast-food outlets was a mere ₹140 in 2025, the lowest among major segments. Usage, however, has soared. Three years ago, there were only 24 UPI-based food payments per 100 Indians per month. By 2025, that number skyrocketed to 161—the highest growth rate observed in any category.
Beyond daily spends, UPI is also facilitating significant financial activity. Categories like "debt collection agencies" and "securities brokers and dealers" recorded the highest average UPI expenditure per person. The average Indian spent nearly ₹543 via UPI on debt collection in 2025. Furthermore, digital gold purchases via UPI have consistently featured among the top 30 merchant segments this year, with an average purchase worth just ₹138, illustrating how UPI enables micro-investments.
The Uneven Map of a Cashless India
Despite its nationwide presence, UPI adoption is not uniform across India. The analysis reveals a strong correlation between economic prosperity and UPI usage. States with the lowest per capita income, like Bihar, Uttar Pradesh, and Jharkhand, also show the lowest per capita UPI spending, ranging between ₹5,000 and ₹5,800 annually against a national average of over ₹17,000.
On the other hand, residents of Telangana, Goa, and Delhi lead the country, spending upwards of ₹25,000 per month through UPI. Gujarat presents an interesting anomaly as a high-income state where UPI spending remains less common. Preferences also vary: Assam and Maharashtra showed the highest affinity for low-value transactions (average under ₹1,200), while Andhra Pradesh and Punjab saw higher average values (over ₹1,600). It is important to note that state-level data is available for only about 62% of 2025 payments, with the rest listed as "unclassified."
The journey of UPI, fueled by cheap data, widespread smartphone access, and a zero-charge model for users, is deeply felt through its ubiquitous QR codes. As India moves towards greater economic formalization, the next phase of UPI's growth will depend on boosting awareness and adoption in the states currently lagging behind, ensuring the benefits of a digital economy reach every corner of the nation.
