Southern states lead UPI adoption on per capita basis, cash still the king in the east

Eastern states lag behind in UPI transactions per capita in July

Maharashtra may lead the country, accounting for nearly a tenth of Unified Payments Interface (UPI) transactions in the country, but southern states fare better when measured for per capita use of the real-time payment system.

A Moneycontrol analysis shows that southern states are way ahead of the rest of the country in digital payments adoption. In per capita terms, residents in the south averaged 12.9 monthly transactions each, double the six in north and central India.

States in the east were far behind at under four transactions, with Bihar at just 3.1 transactions per person in a month.

The data highlights how digital payments adoption is uneven. The southern states, with 3.56 billion transactions against a population of 276 million, posted the highest per capita volume at 12.9. Western states, led by Maharashtra and Gujarat, followed with 11.9 transactions per person. In contrast, the north and central region, despite accounting for 3.47 billion transactions, had a significantly lower per capita usage of just 6.1.

The east and northeast remain weak. Eastern India, including populous states such as Bihar and West Bengal, recorded only 3.9 transactions per person, while the northeast managed 5.5.

Among states, Maharashtra led in absolute numbers with 9.2 percent of all UPI transactions, translating into 14.8 per person. Karnataka and Tamil Nadu followed closely with 5.8 percent and 4.7 percent of national transactions respectively. Yet, when adjusted for population, smaller states and union territories outperformed.

Delhi topped the chart with 21.1 transactions per person, despite accounting for just 2.4 percent of total volumes. Telangana followed with 20.6, underlining the depth of penetration in urban and southern markets. Goa also recorded a high 19.2 transactions per person despite contributing only 0.2 percent to the national pie.

In contrast, the country’s most populous state, Uttar Pradesh, accounted for 5.3 percent of transactions but had just 4.3 per capita, reflecting low penetration. Bihar, Jharkhand, and Madhya Pradesh also trailed with fewer than five transactions per person in a month.

Southern states and union territories demonstrate widespread everyday adoption, while northern and eastern regions continue to likely depend more on cash, with digital use concentrated in urban pockets.