Indian Economy News

UPI emerges as world’s largest real-time payments platform, anchoring India’s digital economy

The Unified Payments Interface (UPI), launched in 2016 by the National Payments Corporation of India (NPCI) under the Reserve Bank of India, has completed a decade as the world’s largest real-time payments platform, powering nearly half of global instant transactions. Over the years, it has evolved from a modest digital experiment into the backbone of India’s digital economy, driving financial inclusion and enabling seamless, integrated payments across the country. From just 373 transactions in its first month, UPI processed around 24,162 crore transactions in 2025-26, reflecting an exponential 12,000-fold increase in volume. In value terms, transactions surged from Rs. 0.07 lakh crore (US$ 1.07 billion) in 2016-17 to nearly Rs. 314 lakh crore (US$ 3.58 trillion) in 2025-26, highlighting its massive scale and adoption. Daily transactions now average about 66 crore, with a value of nearly Rs. 0.86 lakh crore (US$ 9.8 billion), underscoring its deep penetration in everyday commerce.

UPI today accounts for around 85% of India’s digital payment volume, supported by participation from over 703 banks and widespread usage across merchants, businesses and government services. Person-to-Merchant (P2M) transactions contribute 63% of volume, largely driven by low-value retail payments, while Person-to-Person (P2P) transactions account for 71% of value, indicating trust in higher-value transfers. Notably, 86% of merchant payments are below Rs. 500 (US$ 5.71), reflecting UPI’s role in digitising small-ticket transactions. Internationally, UPI has expanded to countries such as the UAE, Singapore, France and Nepal, facilitating cross-border payments and strengthening India’s global fintech footprint. With recognition from global institutions and continued innovation in areas like credit and cross-border services, UPI is set to remain central to India’s digital public infrastructure and economic transformation.

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