State is number 2 in country when it comes to UPI transactions; groceries, supermarkets largest drivers of this payment mode; fast food joints follow<\/p>\n
Do you often rely on UPI to settle your bills? You\u2019re not alone. Karnataka has emerged as one of the country\u2019s biggest digital payment hubs, ranking second in UPI transactions after Maharashtra. In July 2025 alone, the state clocked 1,067.74 million transactions worth Rs.1.44 lakh crore \u2014 a staggering figure that reflects how deeply UPI has become woven into the everyday lives of people across Karnataka\u2019s cities and towns.<\/p>\n
According to an analysis of data from National Payments Corporation of India (NPCI), Karnataka accounted for 5.48% of India\u2019s UPI volume and 5.76% of its value, placing it ahead of larger states like Uttar Pradesh, Telangana, and Tamil Nadu. Maharashtra retained the top spot with 1,905.45 million transactions, but Karnataka\u2019s growing share highlights the strength of its digitally savvy population, dominated by Bengaluru\u2019s tech-driven ecosystem.<\/p>\n
Where UPI is most used
A deeper look at the merchant category classification reveals that groceries and supermarkets remain the single largest driver of UPI transactions across India, with a staggering 3,032.59 million payments valued at Rs.64,882 crore. This is followed by fast-food restaurants (1,221.46 million transactions) and eating places and restaurants (1,153.40 million), demonstrating how small-ticket daily spends are fuelling the growth of cashless payments.<\/p>\n
Telecommunication services accounted for 871.88 million transactions worth Rs.21,629 crore, while fuel stations generated 612.49 million payments, reflecting how essential services have rapidly integrated UPI into their transaction systems. In the lifestyle and entertainment segment, digital gaming recorded 351.24 million payments worth over Rs.10,076 crore, further proving the rising digital consumption trends in metros like Bengaluru, Mysuru, and Mangaluru.<\/p>\n
Interestingly, UPI is not confined to retail spends alone. Categories like utilities (Rs.23,497 crore), securities brokers and dealers (Rs.61,080 crore), and government services (Rs.11,298 crore) also form a significant share, showing how the platform has evolved into a mainstream financial channel rather than being restricted to peer-to-peer or shopping payments.<\/p>\n
India\u2019s overall UPI growth
Nationwide, UPI recorded 12.39 billion transactions in July 2025, with a total value of Rs.7.34 lakh crore. Karnataka\u2019s contribution positions it as a frontrunner in India\u2019s digital finance journey, only behind Maharashtra. Experts believe that with UPI now entrenched in both urban households and business ecosystems, its next wave of growth will come from semi-urban and rural Karnataka.<\/p>\n
Road ahead
As Bengaluru continues to lead India\u2019s fintech revolution, analysts predict Karnataka will remain at the forefront of UPI innovation. From groceries to government services, UPI has become an indispensable part of daily life \u2014 and Karnataka\u2019s numbers show it is setting benchmarks for the rest of the country.<\/p>\n","protected":false},"excerpt":{"rendered":"State is number 2 in country when it comes to UPI transactions; groceries, supermarkets largest drivers of this…\n","protected":false},"author":2,"featured_media":91172,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[45464,45463,45462,2306,86,56,54,55,45461,45460],"class_list":["post-91171","post","type-post","status-publish","format-standard","has-post-thumbnail","category-mobile","tag-digital-payment-karnataka","tag-karnataka-upi-transactions","tag-maharashtra-upi-leader","tag-mobile","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-upi-transaction-statistics","tag-upi-usage-in-india"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/91171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=91171"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/91171\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/91172"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=91171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=91171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=91171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}