PhonePe has once again solidified its position as the undisputed leader of India’s digital payments ecosystem, recording a staggering 8.93 billion UPI transactions in July 2025. This performance represents a commanding 45.88% market share in terms of transaction volume, as revealed by the latest data from the National Payments Corporation of India (NPCI). The platform’s success was significantly driven by consumer spending in essential categories like groceries, supermarkets, and fast food.

Overall, the Unified Payments Interface (UPI) network reached a new milestone in July, processing an all-time high of 19.47 billion transactions with a total value of ₹25.08 lakh crore. PhonePe’s dominance was even more pronounced in terms of value, where it held a nearly 48.64% share, processing transactions worth ₹12.20 trillion. The platform’s closest competitor, Google Pay, was a distant second with 6.92 billion transactions and a 35.56% market share by volume. Together, the two platforms now account for over 81% of all UPI volume and over 84% of the total value.

A deep dive into the transaction data from NPCI reveals a clear trend: the growth of UPI is being fueled by everyday consumer needs. In July, groceries and supermarkets emerged as the top merchant category, accounting for 3.03 billion transactions worth ₹64,882 crore. This was closely followed by the fast food category with 1.22 billion transactions and restaurants with 1.15 billion. This shift towards high-frequency, low-ticket-size transactions indicates UPI’s deep penetration into the daily lives of Indian consumers.

While other players like Paytm (7.02% market share) and Navi (2.28%) are attempting to gain ground, the data for July underscores the consolidation of the market around the duopoly of PhonePe and Google Pay. PhonePe’s continued success is a testament to its widespread merchant acceptance, user-friendly interface, and the increasing reliance of Indians on digital payments for every type of purchase, from daily groceries to dining out.

Key Highlights:

• PhonePe led the UPI market in July with 8.93 billion transactions, securing a 45.88% market share by volume and nearly 49% by value.
• The overall UPI ecosystem reached a new peak with 19.47 billion transactions worth ₹25.08 lakh crore in July.
• The growth was largely driven by consumer spending on essential goods and services, with groceries, supermarkets, and fast food emerging as the top transaction categories.
• The data confirms the continued dominance of PhonePe and Google Pay, which together controlled over 81% of the total UPI transaction volume.