UPI preferred mode of transaction at 57%, surpassing cash at 38%: Survey
- IBEF
- February 17, 2026
India's digital payment ecosystem has now reached a major milestone with Unified Payments Interface (UPI) being the preferred method of transaction at 57%, surpassing cash usage at 38%, as shown in a survey published by DD News. These results show that there has been a fast change in the consumer's way of paying, about how much people are now using digital payments. This change has been fuelled by exponential growth in mobile phone usage, and the internet being more commonly available as well as increased acceptance of digital banking products. The simplicity, speed, and compatibility of UPI allow it to receive wide acceptance from both businesses and consumers alike. In addition, the fact that UPI is becoming increasingly accepted shows that consumer behaviour is changing rapidly and that digital payments are now a larger part of everyday economic activity throughout both urban and rural areas of India.
This survey also highlights how the government is helping to improve financial inclusion through initiatives, as well as modern infrastructure and technology, therefore allowing these improvements to happen more quickly. In addition to government programs and infrastructure improvements, the proliferation of digital payment systems provides small businesses, merchants, and the general population with more opportunities to engage with the formal financial system, providing increased transparency and efficiency in financial transactions. This increase in the use of UPI as a form of payment is expected to support the growth of e-commerce as well as support the ease of doing business within India, and ultimately lead to strengthening the overall digital economy of India. Observers of the industry see the continuation of innovative development of new technologies in the fintech or financial services industries, combined with a strong user trust relationship and the availability of improved security applications being made available, will continue to promote greater adoption of digital payment systems. In addition, the increasing dominance of UPI shows that India is one of the leaders in the development of real-time payment systems and continues to serve as a global benchmark in the development of digital financial technologies.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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