Digital Payment Trends in February 2025: UPI, IMPS, FASTag, and AePS Performance

The digital payments ecosystem in India witnessed mixed trends in February 2025, with Unified Payments Interface (UPI) transactions experiencing a month-on-month (MoM) decline, while FASTag and Aadhaar Enabled Payment System (AePS) transactions demonstrated steady growth. The variations in transaction volumes and values can be attributed to the shorter month of February and changing consumer payment behavior.

According to the latest data released by the National Payments Corporation of India (NPCI), the digital payments industry continued to expand on a year-on-year (YoY) basis, reflecting increased adoption of cashless transactions across the country.

UPI Transactions Witness a Dip Due to Fewer Days

UPI transactions, which have been the backbone of India’s digital payment revolution, saw a 5% MoM decline in volume, dropping from 16.99 billion transactions in January to 16.11 billion in February. The transaction value also decreased by 6.5%, from ₹23.48 trillion in January to ₹21.48 trillion in February.

Comparison with Previous Months:

• December 2024: 16.73 billion transactions | ₹23.25 trillion
• January 2025: 16.99 billion transactions | ₹23.48 trillion
• February 2025: 16.11 billion transactions | ₹21.48 trillion

Despite the MoM decline, UPI transactions grew by 33% in volume and 20% in value on a YoY basis, showcasing the increasing penetration of digital payments.

IMPS Transactions Decline in Both Volume and Value

The Immediate Payment Service (IMPS), which enables real-time interbank electronic fund transfers, also saw a dip in both volume and value during February 2025.

• Volume: Dropped 9% MoM, from 444 million transactions in January to 405 million in February.
• Value: Declined 7% MoM, from ₹6.06 trillion in January to ₹5.63 trillion in February.

Comparison with Previous Months:

• December 2024: 441 million transactions | ₹6.02 trillion
• January 2025: 444 million transactions | ₹6.06 trillion
• February 2025: 405 million transactions | ₹5.63 trillion

On a YoY basis, IMPS transactions saw a 24% decline in volume and a 1% decrease in value, indicating a possible shift in user preference toward UPI for instant money transfers.

The daily transactions for February stood at 14.46 million, a slight increase from 14.33 million in January, with a total daily value of ₹20,110 crore in February compared to ₹19,562 crore in January.

FASTag Transactions Continue Upward Trend

Unlike UPI and IMPS, FASTag transactions witnessed a 1% increase in volume during February, despite fewer days in the month.

• FASTag volume: 384 million transactions in February, compared to 380 million in January and 382 million in December.
• Transaction value: ₹6,601 crore in February, a slight dip from ₹6,614 crore in January.

Comparison with Previous Months:

• December 2024: 382 million transactions | ₹6,620 crore
• January 2025: 380 million transactions | ₹6,614 crore
• February 2025: 384 million transactions | ₹6,601 crore

On a YoY basis, FASTag transactions grew by 19% in volume and 18% in value, highlighting increased adoption of electronic toll payments.

Daily transactions in February stood at 13.71 million, up from 12.27 million in January and 12.32 million in December, with a daily transaction value of ₹236 crore, compared to ₹213 crore in January.

AePS Transactions Show Steady Growth

The Aadhaar Enabled Payment System (AePS), which allows digital transactions using Aadhaar authentication, recorded a stable performance in February.

• AePS volume: 94 million transactions, similar to January.
• AePS transaction value: Increased 2% MoM, from ₹24,026 crore in January to ₹24,410 crore in February.

Comparison with Previous Months:

• December 2024: 94 million transactions | ₹24,020 crore
• January 2025: 94 million transactions | ₹24,026 crore
• February 2025: 94 million transactions | ₹24,410 crore

On a YoY basis, AePS transactions saw a 14% increase in volume and 11% growth in value, reflecting its growing importance in rural and semi-urban areas where banking infrastructure remains limited.

The number of daily transactions increased to 3.37 million in February, up from 3.03 million in January and 3.02 million in December, signifying steady user adoption.

Key Takeaways and Future Outlook

Fewer Days in February Led to a Natural Dip in Transactions:

• The decline in UPI and IMPS transactions was largely due to February being a shorter month.
• FASTag and AePS continued to show resilience despite fewer days.

UPI Growth Remains Strong on a Yearly Basis:

• Despite a MoM decline, UPI recorded a 33% increase in transaction volume YoY, demonstrating its dominance in India’s digital payments landscape.

FASTag’s Growth Indicates Higher Toll Collection & Digital Adoption:

• The 19% YoY growth in FASTag transactions reflects improved compliance with electronic toll collection.

AePS Gains Popularity in Rural India:

• The steady YoY increase in AePS transactions shows its role in financial inclusion, particularly in rural and semi-urban regions.

Future Trends:

• With NPCI’s continuous innovations, such as UPI Lite and international UPI expansion, digital transactions are expected to grow.
• Government policies supporting cashless payments will further boost adoption in the coming months.

Summary of the News