A report notes that 709 million active QR codes have effectively connected the local kirana store to the formal economy
Emphasising that India’s payment behaviour has shifted from simple screen taps to a scan-first economy, a report has noted that kirana stores are rapidly integrating into the formal economy as the digital payments infrastructure deepends.
Worldline, in a report, highlighted that 709 million active QR codes have effectively connected the local kirana store to the formal economy, placing them on equal footing with modern retail. Overall, cards still complement unified payments interface (UPI), with credit cards leading high-value spends, prepaid cards growing in micro and recurring uses, while debit cards declining as digital payments advance.
The report pointed out that in the third quarter of 2025, total UPI transaction volume hit 59.33 billion, a 33.5 per cent increase from the 44.44 billion recorded in Q3 2024. Correspondingly, the value of these transactions climbed 21 per cent to Rs 74.84 trillion, up from Rs 61.89 trillion in the same period last year.
As adoption broadens to include micro-transactions for tea, bus tickets, and vegetables, the Average Ticket Size (ATS) is shrinking for the right reasons. The overall ATS for UPI transactions in Q3 2025 stood at Rs 1,262, a decrease from Rs 1,363 in Q3 2024, reflecting a 9 per cent drop driven by deeper usage in everyday, low-ticket categories.
“The data shows a functioning balance: UPI drives high-frequency merchant transactions, while an 8 per cent jump in credit card issuance secures high-value consumption,” as pointed out by the report.
Credit cards continued to dominate high-value spending, with transactions up 26 per cent to 1.45 billion and value reaching Rs 6.07 trillion. Debit card activity declined to 0.33 billion transactions (–22 per cent) and Rs 1.12 trillion (-13 per cent) as users shifted to UPI and credit.
