New Delhi [India], December 22 : India's traditional kirana stores are rapidly integrating into the formal economy as the country's digital payments infrastructure deepens, with over 70 crore active QR codes now linking local merchants to the mainstream financial system, according to a report by Worldline.
The report highlighted that India's payment behaviour has undergone a significant shift, moving from simple screen taps to a scan-first economy. Digital payments are no longer seen as just a convenience, but have become a daily habit for consumers and merchants alike.
The third quarter of 2025 marked a turning point, highlighting the scale and maturity of digital transactions across the country.
It stated, "The 709 million active QR codes have effectively connected the local kirana store to the formal economy, placing them on equal footing with modern retail".
According to the report, the widespread adoption of QR codes has placed neighbourhood kirana stores on equal footing with modern retail formats.
With 709 million active QR codes in use, even the smallest consumer goods outlets are now directly connected to the formal economy, enabling seamless acceptance of digital payments and improved financial visibility.
The data presented in the report shows a balanced digital payments ecosystem. The Unified Payments Interface (UPI) continues to drive high-frequency merchant transactions, becoming the preferred mode for everyday purchases.
At the same time, an 8 per cent jump in credit card issuance has supported high-value consumption, indicating growing consumer confidence and aspirational spending.
The report noted that while UPI dominates daily, small-ticket transactions, cards continue to play a complementary role in India's payment landscape. Credit cards remain the leading instrument for high-value spends, reflecting their importance in larger purchases.
Prepaid cards are witnessing growth in micro-payments and recurring usage, catering to specific consumer needs. In contrast, debit card usage is gradually declining as digital payment options expand and evolve.
The report emphasised that these payment rails now operate side by side, with scans supporting daily transactions and swipes facilitating aspirational spending. This coexistence reflects the maturity of India's digital payments ecosystem, which caters to a wide range of consumer behaviours and spending patterns.
Importantly, the report pointed out that India is no longer following global benchmarks in digital payments. Instead, the country is setting the pace for the global financial community.
The scale of QR code adoption, the dominance of UPI, and the balanced role of card-based payments together demonstrate how India's payment systems have become deeply embedded in everyday economic activity.
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