UPI spikes in India, but some states are still in the slow lane
Normalizing state-by-state UPI volumes and values by population as of November 2025 reveals stark contrasts in depth of adoption. Maharashtra, the country’s largest state economy, records almost seven times the per capita UPI transactions of Bihar. Telangana, which ranks second nationally, records more than six times the average usage seen in Tripura.
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The upper part of the chart is dominated by southern and western states. While Karnataka, Tamil Nadu and Kerala are comfortably above the national average, Jharkhand, Assam and West Bengal are at the bottom, highlighting a persistent digital divide.
Today, UPI processes more than 20 billion transactions per month and accounts for nearly 85% of India’s digital payments. However, intensity of use tracks income levels, urbanization, and merchant acceptance much more closely than population size.
When adjusted for population, smaller and more urbanized areas come out on top. Delhi leads with around 23.9 transactions per capita every month, followed by Goa with 23.3, Telangana with 22.6 and Chandigarh with 22.5. Among major states, Maharashtra stands out with around 17.4 transactions per capita; This reflects dense urban networks and widespread QR code use.
Transaction values tell a similar story. Telangana tops the list with per capita monthly UPI of around Rs 34,800, ahead of Goa at Rs 33,500 and Delhi at Rs 31,300. This points to routine use of UPI for higher ticket payments in organized retail, services and professional activities.
Also Read: Policy reforms, digital surge power to India’s insurance sector in 2025: LeadersAt the other end of the spectrum, adoption remains shallow. In Tripura and Bihar, there are an average of less than four transactions per person per month, with per capita values roughly Rs 5,100 and Rs 5,400. Jharkhand, Assam and West Bengal are clustered right behind them. In practical terms, a Delhi resident uses UPI about six times more often than someone in Bihar or Tripura; This highlights gaps in person-to-dealer infrastructure in eastern and north-eastern India.
Regional models reinforce division. The southwestern corridor, stretching from Maharashtra to Karnataka and Telangana, shows consistently high frequency and value, signaling mature digital ecosystems. The northeast presents a mixed picture: Tripura and Assam are lagging, while Arunachal Pradesh and Sikkim report relatively higher per capita usage; This likely indicates greater reliance on digital payments in difficult terrains where access to cash is limited.
Takeaway is a fast-paced digital economy. As UPI enters its next phase of growth, closing the per capita gap will depend on wider smartphone penetration, more reliable connectivity and faster onboarding of vendors in lagging states. Technology is already ubiquitous; It is not the depth of use.
With inputs from TOI
