Telangana logs ₹1.2 lakh crore UPI payments, ranks fourth in India
HYDERABAD: Telangana has emerged as India’s fourth-largest contributor to Unified Payments Interface (UPI) transactions, according to the National Payments Corporation of India (NPCI), which released state-wise data for the first time.
State records ₹1.26 lakh crore digital payments in July
In July 2025, Telangana recorded ₹1.26 lakh crore worth of digital payments through UPI — about 5.8% of the national total. The state also saw 791 million (79.1 crore) transactions, accounting for 4.1% of India’s total transaction volume. Economists said the figures underline Telangana’s key role in the country’s digital economy and the rapid public adoption of digital payment systems.
Kirana purchases lead in volume, loan recoveries in value
NPCI data showed that the top 15 business categories accounted for 70% of all UPI transactions and 47% of total value. Grocery purchases led in volume with 24.3% of all payments but just 8.8% of the total value, indicating frequent low-value transactions. Loan recovery agencies, however, contributed only 1.3% of total transactions but 12.8% of transaction value, with the average payment at ₹75,817.
Maharashtra led UPI transaction value nationwide with a 9.8% share, followed by Karnataka (5.5%) and Uttar Pradesh (5.3%). Telangana ranked fourth, the only southern state besides Karnataka in the top five, highlighting the geographic spread of UPI adoption across India.
UPI usage spreads across India with Telangana among top five
Experts attributed Telangana’s performance to high smartphone penetration, growing fintech activity, and user familiarity with mobile payments. Average daily UPI transaction value in India rose from ₹75,743 crore in January 2025 to ₹90,446 crore in August, while daily transaction counts increased more than fivefold to 675 million.
A report by fintech firm PhonePe and consulting major Boston Consulting Group (BCG) said Telangana leads in per capita digital transactions, with 44% of its citizens using PhonePe — 60% higher than the national average.