Transaction Triumph: Digital Payments Skyrocket to 99.8% Volume Share in H1 2025

Image Source: Payhuddle

In the first half of 2025, digital payments in India surged to 99.8% of total transaction volume and 97.7% by value, reflecting deep digitalization. UPI led in volume with 85%, while RTGS dominated value at 69%, highlighting a robust and rapidly expanding payments ecosystem.

India’s digital payments landscape has witnessed a phenomenal transformation, as revealed by the Reserve Bank of India’s (RBI) latest Payment Systems Report for the half-year ended June 2025. Digital payments accounted for an overwhelming 99.8% of the total payment transaction volume and 97.7% of the transaction value, marking a significant increase from previous years.

The staggering growth underscores India’s shift to a predominantly digital economy driven by widespread accessibility, increased user adoption, and a robust acceptance network. Since 2019, digital payment transaction volumes have grown from 3,248 crore to 20,849 crore in 2024, while the value of transactions rose from Rs 1,775 lakh crore to Rs 2,830 lakh crore, nearly all attributed to digital methods.

Key highlights:

Digital Payment Volume Dominance: Unified Payments Interface (UPI) led the charge, accounting for roughly 85% of total transaction volume during H1 2025. This reflects UPI's position as the most widely used retail payment system in India due to its efficiency and ease of use.
Value Concentration in RTGS: In contrast, the Real Time Gross Settlement (RTGS) system, designed for large-value wholesale transactions with a minimum limit of Rs 2 lakh, held a commanding 69% share of the payment value but only 0.1% share in transaction volume.
Remarkable Growth Rates: Over the past five years, digital payments grew 6.6 times in volume and 1.6 times in value, reflecting annual compound growth rates of 46% by volume and 10% by value.
Decline of Paper-based Instruments: While payments via digital channels soared, traditional paper-based transactions like cheques accounted for just 2.3% of total transaction value, indicating continuing migration toward digital solutions.
Total Transactions Overview: In H1 2025, there were 12,549 crore payment transactions amounting to Rs 1,572 lakh crore. Digital payments contributed Rs 1,536 lakh crore of this total, signaling broad acceptance across India’s economy.

This impressive digital footprint highlights India’s growing financial inclusion and digital infrastructure strengthening, positioning the country as a global leader in digital payments. With convenient, instant payment options like UPI at its core, the ecosystem is expected to witness further innovation and growth in the coming years.

Sources: Reserve Bank of India Payment Systems Report (June 2025), Economic Times, NDTV, New Indian Express, CNBC TV18, NewsBytes6

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