Indian Economy News

United Payments Interface (UPI) dominates digital payments, sees explosive growth over five years

  • IBEF
  • January 28, 2025

The United Payments Interface (UPI) has emerged as the dominant platform in India's digital payments ecosystem, capturing 83% of the total payment volume by the end of 2024, compared to 34% in 2019, as per the Reserve Bank of India’s (RBI) Payments System Report. UPI’s transaction volume rose from 375 crore in 2018 to 17,221 crore by 2024, with the total digital payments volume reaching 20,787 crore transactions. The value of UPI transactions also surged from Rs. 5.86 lakh crore (US$ 67.71 billion) in 2018 to Rs. 246.83 lakh crore (US$ 2,852 billion) in 2024, marking an extraordinary compounded annual growth rate (CAGR) of 89.3% in volume and 86.5% in value over five years. Concurrently, the share of other payment systems like Real-Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS), and card-based payments declined to just 17%. 

India’s overall payment ecosystem has witnessed unprecedented growth, with the total transaction value increasing from Rs. 1,775 lakh crore (US$ 20,510 billion) in 2019 to Rs. 2,830 lakh crore (US$ 32,701 billion) in 2024. Retail digital payments alone grew nearly 100 times over the past 12 years, reaching 16,416 crore transactions in FY25. The RBI’s Digital Payment Index also reflected this advancement, growing from a base of 100 in March 2018 to 445.50 in March 2024. Mr. T. Rabi Sankar, Deputy Governor of RBI, credited this progress to innovation and regulatory support, which have positioned India's payment systems among the most modern globally. Over the past five years, digital payments have recorded a five-year CAGR of 45.9% in volume and 10.2% in value, underscoring India’s digital transformation. 

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

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