In 2025, PhonePe continues its journey as a formidable leader in the digital payments landscape, shaping the way Indians transact every day. From neighborhood stores to online shopping, PhonePe has not only expanded its reach but also profoundly influenced the digital payments ecosystem in India. The company’s user-friendly interface, constant innovation, and strategic expansion have made it one of the most relied-on payment platforms. Let’s explore the latest PhonePe statistics and understand the platform’s pivotal role in India’s financial digitization.

Editor’s Choice: Key Milestones

In January 2025, PhonePe held a 48.4% share of UPI payments in India, maintaining its leadership position.
The total expenses of PhonePe increased by 31.3%, amounting to ₹7,756 crore.
PhonePe’s market share in India’s Unified Payments Interface (UPI) transactions stands at approximately 48.4%.
Expenses related to payment processing grew by 75% to ₹1,166 crore, reflecting the increased transaction volume.
With a valuation of $12 billion, PhonePe stands as India’s most highly valued privately owned fintech firm.
Employee benefits accounted for 46.45% of PhonePe’s total expenses, with ESOP expenses comprising a significant portion.
As of 2025, PhonePe processes over 310 million online transactions daily, highlighting its robust infrastructure.

Age Distribution of PhonePe Website Users

The 25–34 age group dominates PhonePe’s website traffic, accounting for 37.29% of total users, the largest demographic by a significant margin.
Users aged 18–24 make up the second-largest group at 21.39%, highlighting strong traction among younger adults.
The 35–44 age bracket contributes 15.31%, showing moderate engagement from mid-career professionals.
Website usage decreases with age, as seen with the 45–54 group representing only 10.42% of users.
Seniors aged 55–64 form 8.89%, while the 65+ segment accounts for just 6.71% ,the smallest share of any group.
Overall, 74% of PhonePe users fall between the ages of 18 and 44, emphasizing the platform’s strong appeal among millennials and Gen Z.

General PhonePe Statistics

PhonePe continues to dominate India’s digital payments sector with strong momentum in user base, transactions, and brand visibility. Here’s an updated look at its 2025 standing:

As of May 2025, PhonePe has over 600 million registered users, making it India’s top finance app by downloads.
Daily active users (DAUs) have reached 140 million, reflecting rising daily engagement on the platform.
PhonePe has coverage in 99% of Indian districts, maintaining its near-universal reach across rural and urban India.
Monthly transaction volume now exceeds ₹9.5 trillion INR, confirming its growing market dominance.
38% year-over-year growth in active user base from 2024 to 2025 shows continued strong acquisition.
About 47% of PhonePe users are now active daily, sustaining high user retention and engagement.
PhonePe’s brand recall rate is at 88% in 2025, underscoring its deep market penetration and recognition.

UPI Market Share Breakdown

PhonePe held a dominant 48.4% share of the UPI market. This solidified its position as the leading UPI app in India by a wide margin.
Google Pay followed closely with a 37.2% market share. It remains the second most popular UPI platform in the country.
Paytm accounted for 7% of the UPI market. While trailing behind the leaders, it still holds a significant presence among users.
Navi captured 1.2% of the market. It represents a small but notable player in the growing digital payments space.
CRED held a 0.9% market share. It remains a niche app, primarily used by a specific segment of credit-savvy users.
Amazon Pay had a 0.6% share. Despite Amazon’s ecosystem, the payment arm has a limited UPI footprint.
SuperMoney also recorded a 0.6% market share. It shares similar adoption levels with Amazon Pay in the UPI space.
Others combined made up 4.1% of the market. This includes various smaller apps with limited reach and adoption.
Overall, PhonePe and Google Pay together controlled over 85% of the UPI market. This reflects a high concentration of usage among just two major platforms.

User Growth and Engagement Statistics

PhonePe’s momentum in user acquisition and engagement remains strong in 2025, reflecting both widespread adoption and customer loyalty.

85 million new users joined PhonePe in 2025, reinforcing its appeal to both new and experienced digital users.
User retention rate has climbed to 76%, a sign of deepening trust and daily reliance on the platform.
Average transaction frequency per user has grown by 28% year-over-year, showing more frequent usage per customer.
42% of PhonePe users are female in 2025, indicating steadily improving gender diversity in digital finance.
Peak usage times remain 9 AM–12 PM and 5 PM–9 PM, reflecting integration into daily financial routines.
68% of users are aged 18–35, confirming its dominance among young digital-first users.
Customer satisfaction score has risen to 91%, highlighting consistently positive user experiences on the app.

Transaction Volume and Total Payment Value (TPV)

PhonePe’s surge in transaction volume and total payment value reflects its dominance in India’s UPI landscape and growing trust among users.

Monthly TPV on PhonePe has crossed ₹11.2 trillion as of May 2025, maintaining its lead in UPI transaction value.
44% year-over-year growth in TPV shows the platform’s rising role in digital financial activity.
Average transaction size stands at ₹520 in 2025, with usage varying across P2P and merchant payments.
PhonePe now handles over 225 million daily transactions, making it India’s most transacted payment app.
B2B transactions have grown by 36% in 2025, driven by SME adoption of digital tools.
Recurring payments feature over 35 million active users, powering utilities, telecom, and OTT services.
Cross-border payments rose 13% in 2025, supporting PhonePe’s expansion into international remittances.

UPI Transaction Volume Share

PhonePe led the UPI space with a commanding 47% share of all transaction volumes. This reinforces its position as the top UPI payment app in India.
Google Pay followed with a strong 36% share, highlighting its continued dominance in digital payments alongside PhonePe.
Paytm captured 14% of the market. Despite being a legacy player, it now trails significantly behind the two market leaders.
Other UPI apps collectively made up just 3% of transactions. This emphasizes a highly concentrated market, with over 87% controlled by just PhonePe and Google Pay.

Market Share in the UPI Ecosystem

PhonePe continues to lead India’s UPI revolution with deep penetration across urban, semi-urban, and rural markets in 2025.

PhonePe commands 48.5% UPI market share in India, maintaining its position as the largest UPI platform.
72% of users in tier 2 and 3 cities prefer PhonePe, reflecting its stronghold beyond metros.
The app handles 3 out of every 5 UPI transactions, underscoring widespread user trust.
Over 91% of Indian merchants accept UPI via PhonePe, solidifying its retail dominance.
42% market share growth from 2022 to 2025 shows sustained long-term momentum.
17% of UPI transactions during festivals are made via PhonePe, showing holiday usage spikes.
Rural adoption increased by 34% in 2025, expanding its role in financial inclusion.

Factors Contributing to UPI Transaction Growth

PhonePe’s UPI growth in 2025 is driven by a blend of user-centric features, incentives, and deep ecosystem integration across India.

Cashback and rewards programs have boosted transactions by 28% in 2025, appealing to value-seeking users.
Streamlined interface and faster processing have led to a 37% higher satisfaction rate versus competing apps.
92% of support queries are resolved through AI-driven tools, enhancing efficiency and reducing user drop-offs.
24/7 UPI availability is sustained by strategic banking partnerships, minimizing disruption even during outages.
PhonePe ATMs now operate at over 120,000 local stores, improving cash access in semi-urban and rural zones.
In 2025, 600,000+ rural merchants have joined PhonePe, strengthening digital inclusion and small business reach.
Collaboration with government-backed digital literacy drives led to a 22% rise in digital-first user registrations.

Cyber-safety Measures

In 2025, PhonePe continues to invest heavily in cybersecurity infrastructure, maintaining user trust and transactional integrity.

Two-factor authentication (2FA) remains mandatory for all accounts, adding an extra layer of transaction security.
A 24/7 cybersecurity team actively monitors threats, helping reduce fraud attempts by over 40% in 2025.
256-bit encryption protocols safeguard user data, ensuring secure transactions at every step.
Daily threat scans and audits help maintain 99.95% service uptime, with rapid patch deployment.
PhonePe has invested over ₹1.5 crore in cybersecurity training in 2025, preparing teams to counter evolving threats.
AI and machine learning tools now block suspicious activity with 22% higher accuracy compared to 2024.
Cyber awareness campaigns reached over 6.5 million users per quarter, educating them on phishing and scam prevention.

UPI Usage Patterns Across Indian City Tiers

In Tier 1 cities, 52% of UPI transactions are for merchant payments, while 36% are peer-to-peer (P2P), and 11% go toward recharges and bills. This shows a clear merchant-dominant usage in urban hubs.
In Tier 2 cities, 45% of transactions are merchant-related, with 41% being P2P and 14% for bill payments. There’s a more balanced mix of transaction types compared to metros.
In Tier 3 cities and beyond, 49% of UPI activity is peer-to-peer, making it the leading category. Merchant payments account for 32%, while 19% are used for recharges and bills, showing a shift toward personal transfers in less urbanized areas.

Recent Developments

PhonePe continues to evolve rapidly in 2025, cementing its role as a pioneering force in India’s digital finance ecosystem.

PhonePe is preparing for its IPO on Indian stock exchanges, after posting a ₹2.35 billion profit in FY 2025 with a 63% revenue jump to ₹55 billion.
The 30% UPI market cap rule has been deferred to December 2026, enabling PhonePe to retain its 48.5% market share lead.
Device tokenization rollout continues in 2025, enhancing security by replacing card details with encrypted tokens.
PhonePe has exited the NBFC-AA license model, choosing to collaborate with licensed Account Aggregators for data-sharing.
In January 2025, PhonePe became the first fintech firm to enter quick commerce, targeting rapid expansion through 2026.

Conclusion

PhonePe’s journey from a simple payment platform to a comprehensive financial services provider underscores its pivotal role in India’s digital economy. As it continues to grow in terms of user base, transaction volume, and service offerings, PhonePe not only transforms the payments landscape but also drives financial inclusion across the country. By embracing technology and prioritizing security, PhonePe has established itself as a trusted and innovative force in the digital payments sector. With ambitious plans for further expansion and enhancements, PhonePe is well-positioned to lead India into a digital-first financial future.