In January 2025, India’s Unified Payments Interface (UPI) saw an all-time high, with transactions surpassing 16.99 billion and a total value exceeding Rs 23.48 lakh crore.
This milestone marks the largest number of transactions recorded in a single month, according to the latest data from the government.
The fiscal year 2023-24 has showcased significant growth in the digital payments sector, with UPI emerging as the backbone of India’s digital payment system.
It now accounts for 80% of retail payments across the nation, demonstrating its widespread adoption and trust among users.
For FY 2023-24, the total UPI transaction volume exceeded 131 billion, with a value surpassing Rs 200 lakh crore.
The system’s user-friendly interface, coupled with an expanding network of banks and fintech platforms, has made UPI the preferred choice for real-time payments in India, as noted by the Ministry of Finance.
As of January 2025, over 80 UPI apps, including both bank-specific apps and third-party providers, along with 641 banks, are operational within the UPI ecosystem.
In the ongoing FY24-25, data reveals that 62.35% of UPI transactions are Person-to-Merchant (P2M), while Person-to-Person (P2P) transactions make up 37.65%.
Notably, in January 2025, P2M transactions contributed 62.35%, with 86% of these payments valued at Rs 500 or less.
This underscores UPI’s role in facilitating small-value transactions, highlighting its growing acceptance among the general public.
Professor Carlos Montes from Cambridge Business School, currently in India for the NXT event at the Bharat Mandapam, praised UPI for its innovative approach.
During his visit, he was briefed on UPI’s operational success and its impact on India’s digital economy.
Montes emphasized that UPI offers a model for other countries to learn from.
With its expanding global footprint, UPI is now operational in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, enabling seamless international payments for Indian users traveling abroad.
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