Unified Payments Interface (UPI) continues its robust growth trajectory in India, with July 2025 marking a significant milestone in digital payments. The month witnessed an all-time high in transaction volume, reinforcing the country’s increasing reliance on cashless payment systems. Despite the surge, the top UPI app rankings remained unchanged, with PhonePe and Google Pay maintaining their lead in the digital payments ecosystem.
UPI Records 19.47 Billion Transactions in July 2025
According to the latest data, UPI recorded 19.47 billion transactions in July 2025 — a 5.8% month-on-month increase and a 35% year-on-year growth. This remarkable performance underscores the growing adoption of digital payments across urban and rural India. The increasing integration of UPI with merchants, government services, and financial institutions has contributed significantly to this surge.
Out of the total, UPI-based apps facilitated 19.14 billion transactions, indicating the dominant role of mobile apps in powering the digital economy.
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PhonePe Retains the Top Spot with 46.64% Market Share
Leading the UPI ecosystem once again was PhonePe, which facilitated 893 crore (8.93 billion) transactions, capturing 46.64% of the total UPI market in July. Although it recorded a massive transaction value of INR 12.20 lakh crore, its market share dipped slightly from 47.22% in June, hinting at growing competition.
PhonePe’s sustained leadership reflects its broad merchant network, user-friendly interface, and continued investment in financial services such as insurance, mutual funds, and bill payments.
Google Pay Stays Strong at Second Position
Trailing PhonePe is Google Pay, which processed 692 crore (6.92 billion) transactions worth INR 8.91 lakh crore. The app secured 36.15% of the UPI market, maintaining its position as the second-largest UPI app in India. Google Pay continues to be a preferred option, especially among younger users and urban professionals, due to its integration with the Google ecosystem and frequent cashback incentives.
Together, PhonePe and Google Pay account for over 82% of UPI transaction volumes, highlighting a duopoly in the space.
Industry Outlook: UPI Growth to Continue
With increasing smartphone penetration, digital literacy, and government initiatives supporting cashless transactions, the UPI ecosystem is poised for continued growth. The Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) are also working on expanding UPI’s global reach, setting the stage for cross-border payments in the near future.
Additionally, the introduction of features like UPI Lite, credit on UPI, and voice-based payments are expected to further boost usage among semi-urban and rural populations.
Conclusion
July 2025 was a record-breaking month for UPI, showcasing India’s rapid transition toward a digital-first economy. While PhonePe and Google Pay continue to dominate, the evolving landscape and growing transaction volumes suggest ample opportunities for innovation and new entrants. As UPI matures, it will remain a cornerstone of India’s fintech revolution, enabling secure, seamless, and inclusive digital payments.
