UPI Strengthens India’s Digital Payment Lead With 83.7% Market Share In FY25

The Unified Payments Interface (UPI) reinforced its dominance in India’s digital payments, accounting for 83.7% of total transaction volume in FY25, up from 79.7% in FY24

The Reserve Bank of India’s (RBI) annual report for FY25 showed UPI handled 185.8 billion transactions, a 41% increase year-on-year.

In value terms, UPI transactions rose to ₹261 trillion from ₹200 trillion in FY24.

Growth In Digital Payments & Global Leadership

Total digital payments in India, including card networks and prepaid payment instruments, surged 35% to 221.9 billion transactions in FY25.

The total value of digital payments increased by 17.97% to ₹2,862 trillion.

The RBI noted, “The success of UPI placed India in a leadership position with a 48.5% share in global real-time payments by volume.”

Credit card transactions rose to 4.7 billion, up from 3.5 billion. Debit card use, however, declined sharply by 29.5% to 1.6 billion transactions.

Digital transactions made up 99.9% of non-cash retail payments by volume in FY25.

International Expansion & Future Plans

The RBI plans to expand UPI to 20 countries by 2028–29. Indian UPI apps already work in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE through QR code acceptance.

This enables Indian tourists, students, and business travellers to pay merchants easily.

The RBI also approved NPCI International Payments (NIPL) to deploy UPI-like systems in Namibia, Peru, Trinidad and Tobago, and Jamaica.

It plans to explore Fast Payment System collaborations with the EU, SAARC nations, and other multilateral groups.

UPI transactions continue to revolutionise payments, pushing India to the forefront of the global digital economy.

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