Debt, groceries and fuel top UPI spends in August; gaming drops 26%

Unified Payments Interface (UPI) transactions in August 2025 were led by debt collections, groceries, fuel, and utility payments, with several merchant categories crossing Rs 5,000 crore in transaction value.

According to NPCI data, debt collection agencies topped the chart with transactions worth Rs 77,007 crore, followed by securities brokers and dealers at Rs 45,687 crore during the last month (August).

Among consumer-facing spends, groceries and supermarkets recorded Rs 68,116 crore across 3.1 billion transactions, while service stations (fuel pumps) registered Rs 34,547 crore. Dining also continued to see strong traction with eating places and restaurants at Rs 19,432 crore and fast food restaurants including QSR chains at Rs 14,542 crore.

Essential services maintained a steady flow of digital payments. Telecommunication services accounted for Rs 21,218 crore, and utilities such as electricity, gas, water and sanitary stood at Rs 22,368 crore.

On the discretionary side, drug stores and pharmacies saw spends worth Rs 12,581 crore, while men’s and women’s clothing shops and electronics shops reported Rs 11,811 crore and Rs 10,209 crore, respectively. Government services also crossed the Rs 10,000 crore mark.

Digital spending on games declined sharply in August. The category logged 271 million transactions worth Rs 7,441 crore, down from 351 million transactions worth Rs 10,076 crore in July. The fall is linked to the ban on real money gaming apps enforced in the second half of the month.

Other categories above the Rs 5,000 crore threshold included online marketplaces (Rs 7,822 crore) and liquor stores (Rs 6,116 crore).