India now makes fastest payments globally, driven by UPI: IMF note

India has emerged as the global leader in fast payments, driven by the widespread adoption of the Unified Payments Interface (UPI), according to a recent note by the International Monetary Fund (IMF). Titled ‘Growing Retail Digital Payments: The Value of Interoperability,’ the note highlights a significant shift from cash and card-based transactions to UPI since its launch in 2016. UPI, developed by the National Payments Corporation of India (NPCI), now processes over 18 billion transactions monthly, making it the world’s largest retail fast payment system by volume. The IMF observed that proxies for cash usage, such as ATM withdrawals, have declined in districts with higher UPI adoption, indicating a sustained move towards digital payments.
The IMF authors recommend that policymakers closely monitor the emergence of dominant players in the UPI ecosystem to ensure fair competition. They suggest using a range of metrics to detect anti-competitive behaviour and maintaining dialogue with both existing and new service providers. Despite a marginal 1.5% dip in UPI transactions in June 2025 compared to May, YoY growth remained strong, with transaction volume rising 32% and value increasing by 20%. Daily transaction volumes also grew, reflecting the continued expansion of India’s digital payment infrastructure.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.