UPI processed 85.5% of all payment transactions in India by volume in the second half of CY 2025 but accounted for just 9.5% of the total value — while RTGS, handling a mere 0.1% of volumes, dominated with 68.6% of total transaction value, according to the Reserve Bank of India's Payments System Report for December 2025.
The data lays bare the structural divide in India's payments architecture: UPI as the engine of mass retail transactions, and RTGS as the silent workhorse of high-value settlements.
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NEFT occupied the middle ground, holding the second-highest share in both volume (3.6%) and value (14.9%), reflecting its versatility as a system capable of processing both small and large transactions with settlement within an hour. Prepaid Payment Instruments matched NEFT's volume share at 3.6% but contributed just 0.1% of total transaction value.
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Digital payments now constitute 99.8% of all payment transactions by volume and 97.8% by value, up from 98.9% and 96.2% respectively in CY 2021, recording a CAGR of 43.2% in volume and 17% in value over the period. Retail transactions mirrored this trend, growing from 6,417 crore to 26,786 crore in volume and from Rs 495 lakh crore to Rs 1,009 lakh crore in value between CY 2021 and CY 2025 — a CAGR of 43% and 19.5% respectively.
In value terms, UPI transactions grew from Rs 72 lakh crore to Rs 300 lakh crore over the same period, a CAGR of 43%. UPI now accounts for nearly nine in every ten digital payment transactions in the country.
The data confirms what the industry has long observed: UPI has effectively displaced the debit card as India's default instrument for everyday retail payments, with the decline showing no sign of abating.
The data lays bare the structural divide in India's payments architecture: UPI as the engine of mass retail transactions, and RTGS as the silent workhorse of high-value settlements.
Also Read | Why India cannot build a world-class fintech champ yet
NEFT occupied the middle ground, holding the second-highest share in both volume (3.6%) and value (14.9%), reflecting its versatility as a system capable of processing both small and large transactions with settlement within an hour. Prepaid Payment Instruments matched NEFT's volume share at 3.6% but contributed just 0.1% of total transaction value.
Four Years of Explosive Growth
The broader numbers tell a story of remarkable scale. Total payment transaction volumes grew from 6,437 crore in CY 2021 to 26,819 crore in CY 2025 — a CAGR of 42.9% — while transaction value expanded from Rs 1,741 lakh crore to Rs 3,215 lakh crore, a CAGR of 16.6%.Also Read | Nearly half of India’s online orders are still COD. Why cash on delivery isn’t fading in the UPI era
Digital payments now constitute 99.8% of all payment transactions by volume and 97.8% by value, up from 98.9% and 96.2% respectively in CY 2021, recording a CAGR of 43.2% in volume and 17% in value over the period. Retail transactions mirrored this trend, growing from 6,417 crore to 26,786 crore in volume and from Rs 495 lakh crore to Rs 1,009 lakh crore in value between CY 2021 and CY 2025 — a CAGR of 43% and 19.5% respectively.
UPI's Unstoppable Rise
At the heart of this growth story is UPI. Transactions on the platform surged from 3,873 crore in CY 2021 to 22,828 crore in CY 2025, a CAGR of 55.8% by volume.In value terms, UPI transactions grew from Rs 72 lakh crore to Rs 300 lakh crore over the same period, a CAGR of 43%. UPI now accounts for nearly nine in every ten digital payment transactions in the country.
Debit Cards: The Casualty of UPI's Rise
The flip side of UPI's ascent is the accelerating decline of the debit card. Debit card transaction volumes fell sharply from 408.7 crore in CY 2021 to 133.6 crore in CY 2025 — a CAGR of -24.4% — while value declined from Rs 7.4 lakh crore to Rs 4.5 lakh crore, a CAGR of -11.7%.The data confirms what the industry has long observed: UPI has effectively displaced the debit card as India's default instrument for everyday retail payments, with the decline showing no sign of abating.
