India’s Unified Payments Interface (UPI) has emerged as the world’s most used real-time payment system, according to the International Monetary Fund (IMF).
In its June 2025 report, Growing Retail Digital Payments: The Value of Interoperability, the IMF revealed that UPI now accounts for 85% of India’s digital payments and nearly 60% of global real-time transactions.
UPI processes over 640 million daily transactions, surpassing Visa’s 639 million. In June 2025 alone, UPI recorded 18.39 billion transactions worth ₹24 lakh crore, marking a 32% year-on-year rise from June 2024.
Launched by the National Payments Corporation of India (NPCI) in August 2016, UPI enables instant bank-to-bank fund transfers and merchant payments through mobile apps.
Built on IMPS infrastructure, it allows interoperability across platforms such as Google Pay, PhonePe, Paytm, and BHIM, eliminating friction for users.
The platform gained momentum after the Digital India mission and financial inclusion drives like the Pradhan Mantri Jan Dhan Yojana (PMJDY). Former RBI Governor Raghuram Rajan had called UPI a ‘revolution’ for retail payments in India, citing its sophistication and accessibility.
The Covid-19 pandemic accelerated UPI adoption, as contactless payments became essential. By 2023, UPI had overtaken debit and credit cards in both value and volume of transactions.
UPI’s success stems from its zero-cost model, user-friendly design, and support in multiple languages. The no Merchant Discount Rate (MDR) policy ensures that merchants pay no fees, making it the most cost-effective payment method.
The IMF report highlights UPI’s interoperability and open access as key drivers of adoption. Regulatory support from the RBI, schemes like PM SVANidhi for street vendors, and innovations like UPI 123Pay for feature phones have also expanded its reach.
UPI is now live in seven countries, including Singapore, UAE, France, and Nepal. Its entry into Europe via France enables Indian travellers to pay directly from domestic accounts without currency exchange.
NPCI’s international arm, NIPL, is partnering with global payment gateways and banks to promote cross-border remittances. India is also pushing for UPI’s inclusion as a standard payment mechanism within the BRICS bloc to cut remittance costs.
With 500 million users and recognition from global institutions, UPI has redefined digital payments worldwide. In just nine years, it has become a benchmark for real-time, inclusive, and scalable payment infrastructure.
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