India has emerged as the world leader in fast digital payments, thanks to the rapid rise 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.
Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionised how money is transferred in the country. The platform allows users to link multiple bank accounts to a single mobile app, enabling instant, low-cost, and secure transactions with just a few taps.
According to the Press Information Bureau (PIB), UPI now processes over 18 billion transactions every month. In June 2024 alone, it handled Rs 24.03 lakh crore across 18.39 billion transactions, marking a 32% year-on-year jump from 13.88 billion transactions in June 2023.
“UPI has taken India away from cash and card-based payments and pushed it toward a digital-first economy,” the PIB noted. “It has become a key tool for financial inclusion, especially for individuals and small businesses.”
Today, UPI accounts for 85% of all digital payments in India, connecting 491 million users, 65 million merchants, and 675 banks on a single platform. The system has also gained global recognition, now powering nearly 50% of all real-time digital payments worldwide.
Beyond India, UPI is expanding its footprint. It is already operational in seven countries — UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its debut in France marks UPI’s first entry into Europe, making cross-border payments smoother for Indians travelling or living abroad.
“More than just numbers, this growth reflects India’s trust in digital infrastructure and its steady move towards a cashless economy,” the PIB added.
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