UPI transactions in India hit a new record of 20.01 billion in August 2025, 2.8% more than July and 34% more than last year. However, the total value declined by 1% to ₹24.85 lakh crore. An average of 645 million transactions were processed per day in August.

PhonePe and Google Pay, which handle the most transactions, continue to lead the UPI market, while Paytm remains at the third position. UPI has become a key component of India's fintech growth, and the sector is expected to cross $400 billion by 2028-29.

With increasing usage, there are talks to introduce a small merchant discount rate (MDR) to make the system more sustainable. While the government maintains that UPI will remain free, the RBI has hinted at introducing lower rates. Meanwhile, occasional UPI outages have raised concerns.