India’s digital payments ecosystem expanded sharply in the first half of 2025, led by growth in Unified Payments Interface (UPI) usage and the rapid onboarding of small merchants, according to the India Digital Payments Report (1H 2025) released by Worldline on Wednesday (October 29).

UPI transaction volumes grew 35% year-on-year to 106.36 billion, with total transaction value reaching ₹143.34 trillion between January and June 2025.

The average ticket size declined from ₹1,478 a year earlier to ₹1,348, indicating the growing frequency of smaller, everyday transactions.

Merchant payments lead growth

Person-to-merchant (P2M) UPI transactions rose 37% to 67.01 billion, reflecting deeper digital penetration among small retailers and local Kirana stores. Worldline termed this shift the “Ki

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