Maharashtra is the number one in UPI use, followed by Karnataka, Uttar Pradesh, Telangana and Tamil Nadu, according to the SBI’s Economic Research Department (ERD), even if it warned that higher concentration of transactions between a handful of Taps (Dird party application – -in -terteck warnia.
Referring to state-based data on UPI transactions, published by for the first time, noted the ERD economists that Maharashtra is the consistent leader in digital payments of 9.8 percent volume only in July, followed by Karnataka (5.3 percent), Tamil (4 percent).
In terms of value share, Maharashtra is also at the top of digital payments of 9.2 percent share in July alone, followed by Karnataka (5.8 percent), an increase (5.3 percent), Telangana (5.1 percent) and Tamil Nadu (4.7 percent).
“These shares emphasize the deep -rooted role of these states in the digital ecosystem of India and indicate that their dominance will probably continue as the adoption becomes throughout the country,” said SBI economists.
The SBI report noted that UPI transactions have been considerably expanded, both in value and volume terms. In 2025 itself, the average daily value increased from £ 75,743 in January to £ 80,919 crore in July and up to £ 90,446 crore in August (so far).
The ERD economists said, “The need for a Desi -Intuïtive app at the same time as an umbrella AI architecture cannot be emphasized too much if we are on their way to the use of data.”
PHONEPE is the Numero Uno Upi app followed by Google Pay and Paytm in both volume and value, according to the report.
SBI is the top remitter member with 5.2 billion transactions, almost 3.4x larger than the next remitter (HDFC Bank), according to the report.
“UPI P2P and P2M transactions reveal that UPI transactions have emerged as a primary stock market source for most Indian masses/companies and in all ticket sizes … Merchant transactions are usually low-ticket items.
“Digital payments, led by UPI, have increased rapidly, which is much higher than the CIC number (currency in circulation). The monthly average UPI transactions are £ 24,554 billion, while CIC monthly average growth is £ 193 billion during April 2025,” per assessment of the economists.
In the retail trade to money (UPI + ATM recording with debit cards), the share of UPI in value has increased from only 40 percent in November 2019 to 62 percent in January 2021 to no less than 91 percent May 2025. This is a clear indication that people replace cash by UPI, they added.
The economists noted that there are nearly 300 important codes for trade categories and NPCI has started with only 29 large MCCs (codes for trader category).
“Although NPCI has done a commendable work, we believe that data should be given by NPCI for at least 100 major MCCs,” they said.
The Top 15-Merchant categories accounted for 70 percent in terms of volume and 47 percent in terms of value in July 2025. Groceries accounted for 24.3 percent of the transactions and 8.8 percent in value and debt collection agencies category for 12.8 percent in terms of value only 1.3 percent in volume.
The category transaction value of the collection agencies has risen to £ 93,857 in July 2025 from £ 80,789 crore in April 2025, while the ticket size has fallen to £ 5,817 from £ 5,952
Published on August 18, 2025
#Maharashtra #UPI #Karnataka #SBIs #ERD