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India’s Digital Payments Hit December Peak In 2025 As UPI, FASTag Lead Post-GST Cut
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India’s digital payments hit record highs in December 2025, led by UPI and FASTag. NEFT, RTGS, NACH surged, while card usage dipped post-festive peak.
Mass-use digital payment modes such as UPI and FASTag were the biggest contributors to the December spike.
India’s digital payments ecosystem closed the calendar year 2025 on a strong note, with December emerging as the highest month so far in both transaction volume and value during the ongoing financial year, as reported by Moneycontrol. The momentum built after the GST rate cuts announced in late September clearly carried through to year-end activity.
Retail and infrastructure payments lead the surge
According to Moneycontrol, mass-use digital payment modes such as UPI and FASTag were the biggest contributors to the December spike. UPI continued to dominate low-ticket retail payments, while FASTag benefited from steady highway traffic and year-end travel, pushing both volume and value to fiscal-year highs.
High-value payment rails also joined the rally. Systems such as NEFT, RTGS and NACH (both credit and debit), typically used for salaries, loan disbursals, EMIs and large purchases like automobiles, posted their strongest numbers of the year in December, as reported by Moneycontrol.
IMPS value rises, volumes soften
IMPS presented a mixed picture. While the value of IMPS transactions rose in December compared to August and October, volumes declined. Moneycontrol noted earlier that IMPS has been steadily losing ground to UPI over the years. The trend suggests users now prefer IMPS mainly for higher-value transfers, while relying on UPI for everyday payments.
Cards cool off after festive peak
Credit and debit card usage stood out as the only segment to see a notable dip. Card transaction volumes and values were about 15–20 percent lower than September’s peak, Moneycontrol reported. September had coincided with large ecommerce sales and card-linked discounts, which typically boost card spending. Over time, however, UPI has been steadily eating into card market share, especially since the pandemic.
December beats the festival month
Interestingly, December outperformed even October, traditionally the festive high point for spending. Moneycontrol also pointed out that some of the strongest months this fiscal—before December—were May and August, despite expectations of softer demand ahead of GST cuts.
January 06, 2026, 13:09 IST
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