Wide State-Level Gaps Persist In Per-Capita UPI Usage Despite Rapid Growth

New Delhi, Dec 26 (KNN) India’s rapid expansion in digital payments covers wide regional disparities, with per-capita usage of the Unified Payments Interface (UPI) varying sharply across states, highlighting a persistent digital divide beneath headline growth numbers.

Sharp Gaps in Per-Capita UPI Usage

Adjusted for population, Maharashtra, records nearly seven times the per-capita UPI transactions of Bihar. Telangana, posts more than six times the per-capita usage of Tripura, reported TOI.

Karnataka, Tamil Nadu and Kerala remain well above the national average, while Jharkhand, Assam and West Bengal continue to trail at the lower end of the spectrum.

A per-capita analysis of UPI usage as of November 2025, normalised for population using Unique Identification Authority of India (UIDAI) data, removes state-size distortions and highlights wide disparities in digital payments adoption.

Urban and Income Factors Drive Adoption

UPI handles over 20 billion transactions monthly, making up about 85 percent of India’s digital payments, but usage intensity depends more on income levels, urbanisation and merchant acceptance than on population size.

Once population is factored in, smaller and more urbanised regions dominate. Delhi leads with around 23.9 transactions per person per month, followed by Goa (23.3), Telangana (22.6) and Chandigarh (22.5). Maharashtra stands out with roughly 17.4 transactions per person, reflecting dense urban networks and widespread QR code acceptance.

Transaction Value Reflects Economic Activity

Per-capita transaction values underline disparities in digital depth. Telangana tops the chart with an average monthly UPI value of around Rs 34,800 per person, ahead of Goa (Rs 33,500) and Delhi (Rs 31,300). This pattern suggests regular use of UPI for higher-value transactions across organised retail, services and professional payments.

Tripura and Bihar average fewer than four transactions per person per month, with per-capita values of about Rs 5,100 and Rs 5,400 respectively. Jharkhand, Assam and West Bengal cluster close behind.

Regional Patterns and Policy Implications

Regionally, a south-west corridor stretching from Maharashtra through Karnataka to Telangana shows consistently high transaction frequency and value, indicating mature digital ecosystems. 

The north-east presents a mixed picture. While Tripura and Assam lag, states such as Arunachal Pradesh and Sikkim report relatively higher per-capita usage, possibly due to greater reliance on digital payments in difficult terrain.

(KNN Bureau)