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Maharashtra Leads India's Digital Payments Boom in 2025
18 Aug
Summary
- Maharashtra tops UPI usage, followed by Karnataka, Uttar Pradesh
- UPI transactions surge from ₹75,743 crore in January to ₹90,446 crore in August 2025
- SBI cautions that high concentration of transactions among few TPAPs may stifle Fintech innovation
As of August 2025, Maharashtra has emerged as the undisputed leader in India's digital payments ecosystem, accounting for 9.8% of UPI transaction volume and 9.2% of value. The state is followed by Karnataka (5.5% volume, 5.8% value), Uttar Pradesh (5.3% volume and value), Telangana (4.1% volume, 5.1% value), and Tamil Nadu (4% volume, 4.7% value).
The rapid growth of UPI transactions has been a defining trend in India's financial landscape. The average daily value of UPI transactions has increased from ₹75,743 crore in January 2025 to ₹90,446 crore in August, indicating a significant shift towards digital payments across the country.
However, the SBI report has cautioned that the high concentration of transactions among a handful of third-party application providers (TPAPs) may stifle Fintech innovation in the long run. The economists have emphasized the need for a "Desi Counter Intuitive App" alongside an overarching AI architecture to ensure the continued growth and evolution of India's digital payments ecosystem.
