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UPI (Unified Payments Interface) has transformed how India transacts, becoming the country’s default digital payment method across both urban and rural markets. With over 12.3 billion transactions valued at ₹7.34 lakh crore in the period analyzed, UPI is no longer just a payment mode - it’s the backbone of India’s digital commerce ecosystem.
This category-wise breakdown shows how UPI is being used across daily essentials, services, entertainment, and high-value payments, revealing fascinating patterns in how consumers engage with the platform.
Groceries & Supermarkets: Everyday Essentials Dominate
Volume: 3,032.59 million
Value: ₹64,882 crore
Share: 24% of total transactions by volume, 9% by value
Average Ticket Size: ₹214
UPI has firmly replaced cash at kirana stores, supermarkets, and convenience outlets. The low ticket size shows the dominance of small, frequent purchases — exactly where UPI thrives.
Food Services: The Second-Largest UPI Use Case
Fast Food Restaurants: 10% share by volume, ₹113 average ticket size
Eating Places & Restaurants: 9% share by volume, ₹158 average ticket size
Dining, whether quick-service or casual, is a massive driver of UPI usage. The low friction of scanning a QR code at the counter or table has made UPI the go-to payment method across F&B formats.
Telecom Services: Recurring Digital Payments
Volume: 871.88 million
Value: ₹21,629 crore
Average Ticket Size: ₹575
Recharge and bill payments are a natural fit for UPI. Its speed, no-fee structure, and instant confirmation make it ideal for recurring services like mobile plans and broadband.
High-Value, Low-Frequency Categories
While most UPI use cases are high-frequency, some categories see fewer but much higher-value transactions:
Debt Collection Agencies: ₹93,857 crore (13% of total value) with an average ticket size of ₹5,817
Utilities (Electricity, Gas, Water): ₹1,345 per transaction
Government Services: ₹1,027 per transaction
These categories show UPI’s growing role in formal, large-ticket payments that were once dominated by NEFT or cheques.
Digital Goods & Online Marketplaces
Digital Games: ₹287 per transaction, 3% volume share
Online Marketplaces: ₹8,054 crore total value, ₹660 per transaction
The e-commerce ecosystem is deeply tied to UPI adoption. Whether shopping on Amazon, Flipkart, or smaller D2C sites, UPI’s one-tap payments are becoming standard, reducing cart abandonment.
Fashion & Apparel Payments
Men’s & Women’s Clothing Shops: ₹1,175 average ticket size
Family Clothing Shops: ₹878 per transaction
Uniform & Commercial Clothing: ₹909 per transaction
Fashion is emerging as a notable UPI category, reflecting how digital payments have moved into discretionary spending beyond necessities.
The Bigger Picture of UPI Usage
From the macro lens:
- Top Volume Drivers: Groceries, restaurants, telecom, and pharmacies.
- Top Value Drivers: Debt repayment, utilities, government services.
- Frequency Play: Low-ticket categories like food, groceries, and beauty.
- Value Play: High-ticket services like electronics, gold, and government fees.
UPI’s adoption curve is no longer just about urban millennials — it’s mainstream across India’s spending economy. It powers both high-frequency, low-value daily spends and low-frequency, high-value transactions, proving its versatility.
For businesses, UPI data isn’t just about payments — it’s a live pulse check on consumer behavior in India.
