India’s digital payments ecosystem continued its rapid expansion in the September quarter of 2025, with UPI cementing its dominance and QR codes powering a nationwide shift toward scan-and-pay transactions,
according to a new snapshot released by Worldline India.
The data-rich snapshot, an extension of Worldline’s flagship ‘India Digital Payments Report’, shows that India further strengthened its position as the world’s most dynamic real-time payments market in Q3 2025, driven by record UPI volumes, rapid QR deployment and deeper adoption across metros as well as smaller towns.
UPI transactions rose 33.5 per cent year-on-year to 5,933 crore during the quarter, while transaction value grew 21 per cent to Rs 74.84 lakh crore. Person-to-merchant payments continued to outpace person-to-person transfers, underlining UPI’s growing role in everyday retail spending. P2M transactions jumped 35 per cent to 3,746 crore, compared with a 29 per cent rise in P2P transactions to 2,165 crore.
At the same time, the average UPI ticket size declined to Rs 1,262 from Rs 1,363 a year earlier, reflecting wider usage for low-value, high-frequency payments such as local transport, food deliveries, healthcare essentials and hyperlocal commerce.
A key driver of this growth has been the explosive expansion of QR-based acceptance. India now has about 709 million active UPI QR codes, a 21 per cent increase since July 2024. Dense QR deployment across kirana stores, pharmacies, transport hubs and rural markets has effectively made scan-and-pay the default mode of payment across the country.
PoS infrastructure also expanded sharply, with the number of terminals rising 35 per cent to 1.21 crore between July 2024 and July 2025. Bharat QR terminals stood at 61 lakh, though the segment saw a marginal decline as UPI QR codes continued to dominate merchant acceptance. Private banks led the rollout, accounting for 84 per cent of the market.
Cards, meanwhile, retained their relevance for higher-value transactions even as UPI absorbed most low-ticket spending. Credit card issuance surged 35 per cent year-on-year to 11.34 crore cards, while debit cards crossed the one-billion mark at 102 crore. Prepaid cards stood at 47.01 crore.
Credit card transaction volumes grew 26 per cent to 145 crore in Q3, with transaction value reaching Rs 4.08 lakh crore. Debit card transactions fell 25 per cent, highlighting the ongoing migration of everyday spends to UPI. Prepaid card transactions, however, rose 23 per cent, supported by use cases in gifting, corporate payouts and digital wallets.
At physical points of sale, total card transactions reached 1.18 billion, with transaction value increasing to Rs 2.90 lakh crore. Credit card spending at PoS terminals rose 16 per cent, led by categories such as fashion, travel and wellness. Online card transactions saw even stronger momentum, jumping 29 per cent to 113 crore, with credit cards accounting for Rs 3.86 lakh crore in transaction value.
Worldline’s snapshot also points to the steady rise of mobile-first and tap-based payments. Contactless usage gained traction across metros, mobility services and quick-service retail, improving checkout speed and customer experience.
Looking ahead, the outlook for Q4 2025 and early 2026 suggests faster innovation and deeper integration across the payments ecosystem. Interoperable QR systems are expected to move from pilot stages to everyday use in sectors such as mobility, healthcare, fuel retail and public utilities, enabling a unified scan-and-pay experience.
Credit-on-UPI is also likely to see wider adoption, allowing consumers to access small-ticket credit, EMIs and pre-approved credit lines through familiar UPI journeys. Semi-urban centres and smaller towns are expected to drive the next phase of growth, supported by rapid QR adoption among local merchants and service providers.
Tap-and-pay usage is projected to rise further across malls, metro networks and transit systems, while cross-border QR payments are set to expand along key Asian travel corridors, allowing Indian travellers and students to use domestic QR-based payment experiences seamlessly overseas.
Together, these trends underline how every scan, tap and click is reshaping consumer behaviour and merchant acceptance, reinforcing India’s status as a global leader in digital and real-time payments.
