Groceries and dining bills often settled with UPI payments, according to NPCI reports.
In a significant development for digital payments in India, the Unified Payments Interface (UPI) transactions saw a remarkable surge in July 2025. According to data released by the National Payments Corporation of India (NPCI), the overall value of UPI transactions rose by 22% year-on-year (y-o-y) to ₹25.08 lakh crore.
The volume of UPI transactions also reached an all-time high, with 12.38 billion transactions conducted during the month, marking a 35% increase y-o-y. On an average, 628 million UPI transactions were processed daily.
The NPCI has also provided a breakdown of UPI transactions by merchant category. Groceries and supermarkets emerged as the top category by transaction volume, accounting for 3.03 billion transactions, followed by fast food restaurants, eating places and restaurants, telecommunication services, and service stations.
In terms of transaction value, debt collection agencies topped the list with ₹93,857.47 crore, followed by groceries and supermarkets, service stations, utility bill payments, and telecommunication services. Notable categories by value also include eating places and restaurants, fast food restaurants, drug stores and pharmacies, government services, and clothing shops.
However, no specific information was provided about the number of UPI transactions conducted at gaming apps, services stations, or cigarette shops in July.
The NPCI's data for July 2025 shows that over 3 billion transactions worth ₹64,882 crore were conducted at groceries and supermarkets. Service stations followed closely with ₹35,188.88 crore in transactions, while utility bill payments (electricity, gas, water) accounted for ₹23,497.63 crore.
As the UPI model continues to evolve, experts suggest that the NPCI may soon consider releasing the names of individual merchants to reflect the biggest beneficiaries of the zero merchant discount rate (MDR) UPI model.
It's important to note that the total value of UPI transactions for all merchant categories in July was not specified in the NPCI's data.
[1] Source: NPCI UPI data by merchant category [2] Source: Business Standard [3] Source: The Economic Times [5] Source: Moneycontrol
- The significant growth in digital payments through the Unified Payments Interface (UPI) in India has raised questions about which businesses stand to benefit the most from the zero merchant discount rate (MDR) UPI model.
- As the UPI model continues to evolve, some experts speculate that the National Payments Corporation of India (NPCI) may soon disclose the names of individual merchants to reflect those who are the biggest beneficiaries of the zero MDR UPI model.
- In July 2025, the UPI transactions in the finance, technology, and business sectors saw substantial growth, with groceries and supermarkets leading in transaction volume and debt collection agencies topping the list by transaction value. However, the total value of UPI transactions for all merchant categories in July was not specified in the NPCI's data.
