It is the fall of 2025 and UPI has become the vibrant pulse of Indian finance.
If you are still in pursuit of the best UPI apps in India, you might be a bit behind the trend. But no worries, you are not alone. And honestly, with newer apps on the roll, most of us are feeling this way.
According to the latest NPCI data, millions of Indians are tapping, scanning and sending money every minute.
But are groceries, gaming or fast food payments through UPI really making a difference in your wallet or are they just about convenience?
Read on to find out which categories bring the best benefits, what trends shape your spending and how you can leverage new UPI updates for smarter money moves. On the way, let us also take a look at some apps that go beyond tons of useless vouchers hidden behind the blue scratch card.
Why Actually UPI?
In 2025, even kids know why people incline towards UPI. One-word answer: Convenience.
You see, before the rise of UPI on 11th April 2016, the Indian population depended on various other methods like Cash payments, Debit and credit cards, Net banking / Internet banking, NEFT / RTGS / IMPS and Cheques. All of them were useful, but cash payments and cards stood at the top.
Yet none were as practical as UPI. With the rise of smartphones and smart systems, UPI gained the edge. It proved to be ideal for everyday payments.
|
Feature |
UPI |
Debit & Credit Cards |
Liquid Cash |
|
Source of Funds |
Direct bank debit (immediate deduction) |
Debit: bank account; Credit: credit line |
Physical currency |
|
Convenience |
Instant, 24/7 digital payments via apps & QR | Accepted widely for in-person and online | Accepted everywhere, no tech needed |
|
Security | Two-factor authentication (UPI PIN + app/device) | PIN, OTP, CVV; risks include skimming | Risk of loss, theft and no transaction trace |
|
Fees & Charges | Mostly free for users; minimal merchant charges | Mostly no charges to users; merchant fees apply | No fees, but risk and no rebates |
|
Transaction Limits | Typically ₹1 lakh/day per UPI ID; varies by bank | Depends on bank/card type; often higher limits | No limits |
|
Settlement Speed | Real-time settlement | Typically, 1-3 business days for merchants | Instant cash exchange |
|
Accessibility | Requires a smartphone or a feature phone | Requires a physical card | Immediate, universal |
0
Bad
Check your Credit Score for Free
Your credit score is updated monthly and gives you insight into your creditworthiness. Take control of your financial future today.
UPI Spending Categories Dominating Digital Wallets
Nationwide, UPI transactions are increasing every day, but where does the money actually go?
Based on official NPCI findings from July 2025, groceries and supermarkets top the charts both in transaction volume (over 3 billion) and value, proving that everyday essentials are the biggest digital draw. Fast food restaurants and traditional eateries are close behind, reflecting the rise of quick, contactless dining.
|
Category |
Volume (Mn) |
Value (Cr.) |
|
Groceries & Supermarkets |
3,032.59 |
64,881.98 |
|
Fast Food Restaurants |
1,221.46 |
13,794.22 |
|
Eating Places & Restaurants |
1,153.40 |
18,212.77 |
|
Telecommunication (calls, services) |
871.88 |
21,628.80 |
|
Service Stations (fuel/ancillary services) |
612.49 |
35,188.68 |
|
Digital Goods, Games |
351.24 |
10,076.56 |
| Reading Between the Lines
Well, that was a jargon of useless data, right? If you are thinking such, let me give you another angle to understand the relevance of this statistic. You see, UPI is very closely related to convenience. After all, all people have to do is scan and pay. With UPI Lite, you don’t even have to enter your UPI password. Coupled with high volume and value means more people are actually interested in spending money in sectors like groceries, supermarkets and fast food chains. That means, if you are someone aiming to start a small business or startup for profit, these areas can bring you the best slices of profits. |
Personal Loan
Quick Approval in 24 Hours
💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes
The Rise and Race of UPI Apps
Today, there are a lot of UPI apps in the game. With many third-party apps as well as most banks now supporting and promoting their own UPI facilities from the official applications, finding the best UPI app can be confusing.
Let us take a look at the most popular apps in the Indian market.
|
App |
Key Features |
Stand-Out Feature |
|
GPay (Google) |
Bill payments, money transfers, rewards, UPI QR scan, split bills |
Direct integration with Google accounts |
|
PhonePe |
App recharges, multi-bank UPI, bill pay, gold purchase, reminders |
Wealth management tools |
|
Paytm |
Wallet+UPI, credit cards, e-commerce, cashback and automatic reminders |
All-in-one super app experience |
|
BHIM UPI (NPCI) |
Lightweight interface, bill pay, QR codes, multilingual, low data usage |
Developed by NPCI (National Trust) |
|
Amazon Pay (Amazon) |
UPI, shopping offers, bill pay, EMI on shopping and easy refunds |
Deep Amazon shopping integration |
However, today, in 2025, there are numerous unpopular opinions about better third-party UPI apps, which can offer far better deals and cashback or moneyback incentives, putting Google Pay’s reward coupons to shame.
|
App/Bank |
Cashback/Reward Program |
Special Feature |
|
Amazon Pay (Third-party) |
| Usable on Amazon, & its partners and extra for ICICI CC holders |
|
Super.money (Third-party) |
| Direct cash transfer, no gimmicks |
|
Kiwi (Third-party) |
| Credit card-based UPI payments |
|
Kotak 811 / Kotak App (Bank) |
| Easy UPI-linked account setup |
|
Kredit.Pe (Third-party) |
| Works with bank accounts and RuPay CC |
|
POP UPI (Third-party) |
| High merchant cashback, frequent promos |
|
HDFC PayZapp (Bank) |
| Link the HDFC RuPay credit card for dual rewards |
|
Federal Scapia (Bank) |
| Online/offline spend coverage |
|
Freo UPI (Third-party) |
| ₹15,000 pay later, ₹5L credit line |
Note: Please note that none of the app names mentioned are part of a promotional purpose and are based on vast public opinions and favour. Although the UPI feature is maintained by NPCI, your account data and privacy settings are in the hands of third-party administrators. Ensure to go through the terms and conditions before you sign up for any applications.
0
Bad
Check your Credit Score for Free
Your credit score is updated monthly and gives you insight into your creditworthiness. Take control of your financial future today.
Seasonal Patterns and New UPI Trends
Festive months of the year (Oct–Jan) and sale seasons often see sharp spikes in UPI usage, as new offers and cashback deals roll out for both retail and digital spends.
Digital goods and in-game online payments via UPI are fast-emerging, with the youth leading this new wave. With the vast majority shifting towards a ‘scan & go’ future, the government and NPCI are focusing on enhanced UPI security, voice-enabled UPI and expanded limits to continue to boost trust and adoption.
Security, Spending and Smarter Financial Planning
Frequent UPI users often ask: ‘Is UPI safe for all these payments?’ The answer is yes, provided you use trusted apps, keep your UPI PIN confidential and update apps for the latest security fixes.
The best way to verify this is that make sure your UPI app or payment gateway is NPCi authorised. You can see the logo right there. Most leading UPI apps implement multi-factor authentication and alert you to suspicious activity.
Conclusion:
With UPI cementing its place at the heart of India’s cashless transaction revolution, knowing where your money flows is crucial for optimising your budget.
With more and more UPI-enabled applications in the market that provide attractive cashbacks or offers, it is easy to lose the sense of security.
If you prefer absolute security and prefer to play close to the heart, it is best to stick to the official bank applications that support UPI or other trusted applications like GPay or Phone Pe. If you are looking for the best rewards or other offers, you could explore the third-party options.
Be mindful of the applications you use, especially when it comes to your finances and security. Remember, all that shines is not gold.
Download the Buddy Loan app now!
Get the free Buddy Loan app on your phone
