UPI Surges to 83.7% Share in India’s Digital Payments FY25

The Unified Payments Interface (UPI) strengthened its lead in India’s digital payments, making up 83.7% of total transaction volume in FY25, up from 79.7% in FY24.

According to the Reserve Bank of India’s (RBI) annual report for FY25, UPI processed 185.8 billion transactions, a 41% increase year-on-year. The transaction value also rose to ₹261 trillion from ₹200 trillion in FY24.

Overall, digital payments in India, including transactions through payment systems, card networks, and prepaid payment instruments (PPIs), rose 35% to 221.9 billion in FY25 from 164.4 billion in FY24. In value terms, total digital payments increased by 17.97% to ₹2,862 trillion.

The central bank noted, “The success of UPI has positioned India as a global leader, accounting for 48.5% of real-time payment volumes worldwide.”

Credit card transactions rose to 4.7 billion in FY25 from 3.5 billion in FY24, while debit card usage dropped sharply by 29.5% to 1.6 billion transactions. Digital transactions accounted for 99.9% of total non-cash retail payments in FY25, up slightly from 99.8% in FY24.

Regarding international expansion, the RBI stated its commitment to extending UPI to 20 countries by 2028–29. Indian UPI apps are already accepted via QR codes in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE, enabling Indian tourists, students, and business travellers to make merchant payments using their domestic UPI apps.

The RBI has approved NPCI International Payments (NIPL) to deploy UPI-like infrastructure in Namibia, Peru, Trinidad and Tobago, and Jamaica. It also plans to explore Fast Payment System (FPS) collaborations with countries in the European Union, SAARC, and other multilateral frameworks.

Also Read: Changes In UPI System In India From August 1st: Know The Details