Telangana is emerging as a high-growth digital payments market as consumers increasingly shift to UPI and cashless modes for everyday transactions Insights from the How Urban India Pays 2025 report—based on a survey of over 6,000 customers across 120 cities—show that Hyderabad demonstrates digital payment adoption patterns comparable to major metropolitan areas. The report highlights that large and mid-sized cities in southern India reflect strong UPI usage, with 35% of offline transactions and 52% of online purchases being UPI-driven. Customers in Hyderabad are also increasingly trusting newer digital formats such as wallets and credit cards for both essential and discretionary spending, reflecting a clear preference for fast, seamless and secure payment experiences

Large cities like Hyderabad are rapidly closing the gap with major metros. Across the top six metros, digital payments account for 89% of online and 62% of offline purchases. Hyderabad and mid-sized cities have already reached 56% offline digital adoption, underscoring how quickly these markets are catching up. With rising trust and continued growth in UPI and wallet usage, Telangana's shift toward cashless commerce will only accelerate—positioning Hyderabad as an important hub in India's evolving digital payments landscape.

“Hyderabad is at the forefront of South India's digital transformation, with a 33% year-over-year surge in UPI adoption demonstrating deepening customer trust," said Vikas Bansal, CEO, Amazon Pay India. "From household essentials to high-value purchases, digital payments have become the default choice. This growth reflects customers who value transparency and speed, supported by merchants rapidly adopting digital acceptance. As Hyderabad strengthens its position as one of India's most digitally confident economies, we're committed to providing trusted payment solutions that serve both consumers and businesses across Telangana”.

Amazon Pay mirrors this broader shift. According to the Kearney survey, Tier 2 and Tier 3 cities — including regions surrounding Hyderabad — have emerged as primary growth engines, contributing over 70% of Amazon Pay’s digital spends, signalling deepening penetration beyond metros. Digital payments, led by UPI and wallets, now dominate everyday use cases such as groceries, medicines, utilities and household essentials,

This momentum extends to the merchant ecosystem. Offline merchant payments from Tier 2 and Tier 3 cities processed via Amazon Pay have surged, driven by growing adoption among local sellers, service providers and neighbourhood stores. Hyderabad continues to lead this shift, supported by strong merchant onboarding, and rising repeat usage Amazon Pay is expanding its presence across Telangana by onboarding merchants across high-growth clusters in and around Hyderabad, including Tier-3 markets such as Medak, Rajanna Sircilla, and Vikarabad.

Amazon Pay’s performance in Hyderabad further reflects this momentum, with the city recording 15% YoY growth in overall transactions, driven by a strong over 30% rise in UPI usage. The city also saw nearly 20% YoY growth in transactions made through Amazon Pay ICICI Bank Credit Card and a 10% growth in Amazon Pay Later usage, signalling deeper adoption of flexible, rewards-led payment formats. This aligns with festive trends across Telangana, where 1 in 4 customers used Amazon Pay instruments during the Amazon Great Indian Festival 2025. This adoption of flexible, rewards led payment formats underscores rising comfort with trusted digital payment options.