India has achieved a new global standard in digital payments with the Unified Payments Interface (UPI), which now constitutes approximately 50% of worldwide real-time payment volumes and 84% of all retail digital payments in India, as per the recent report “UPI: The Global Benchmark for Digital Payments,” released today by the National Payments Corporation of India (NPCI) and Boston Consulting Group (BCG) at the Global Fintech Fest 2025. “With over 500 million consumers and 65 million merchants already empowered, UPI has evolved into not merely a payments solution but a daily practice for India,” stated Sohini Rajola, Executive Director of Growth at NPCI.
“UPI has revolutionized payment methods and business growth while gaining international recognition as a model for digital public infrastructure. Beyond convenience, UPI is integrating micro and small enterprises into the formal economy, financially empowering women, and increasing credit access in areas with higher adoption. The next phase involves taking UPI global, reinforcing India’s position as a leader in digital payments on a global scale.” UPI’s outreach spans more than 99% of India’s 19,000+ pin codes, facilitating extensive access to digital payments and promoting financial inclusion.
The effects are already evident: consumer durable loans have increased tenfold, and personal loans have risen by 4.4 times in high-UPI growth districts (with volume growth exceeding 100%) compared to low-growth regions (less than 25%) between FY23 and FY25. Two-thirds of users surveyed indicate improved access to financing since using UPI, while 85% of homemakers report a decrease in cash usage for in-store payments. UPI Autopay transaction volumes have tripled in the past year. Almost half of surveyed users now carry cash only for emergencies, and 40% have not visited an ATM in the last month.
“UPI has transformed long-standing cash usage habits and could potentially surpass cash in the coming years, with strong growth in P2P and P2M transactions,” commented Vivek Mandhata, Managing Director & Partner at BCG. “From embedded payments to integrated finance across e-commerce checkouts, debt repayments, insurance, SIPs, and credit on UPI – the upcoming wave of categories and product innovations will enhance financial inclusion. Credit-driven innovation is particularly aiding new-to-credit consumers and the unbanked in accessing the formal financial system. Built on a state-of-the-art technology infrastructure, UPI currently accounts for nearly 50% of all real-time payments globally and is on course to soon achieve 1 billion transactions daily.” The report underscores UPI’s pivotal role in India’s merchant ecosystem.
Business loans have surged 4.2 times in high-UPI growth districts compared to low-growth areas since FY23. Eight out of ten merchants report increased staff productivity due to tools such as the UPI Soundbox. UPI adoption is also accelerating in significant consumption categories: groceries and supermarkets (+106% CAGR), fast food (+161%), dining establishments (+58%), fuel stations (+69%), and telecom services (+41%) between FY23 and FY25. The platform’s affordable, widespread infrastructure has become essential for small businesses, especially in Tier 2 and rural markets. On the international front, UPI is establishing a global benchmark for secure, interoperable, and scalable digital payments. Countries worldwide are now seeking to emulate India’s model of inclusive digital public infrastructure.
Designed with a mobile-first approach and an unbundled, context-agnostic architecture, UPI connects bank accounts while preserving user privacy through distributed data responsibilities among network participants. Coupled with interoperability, resilience, scalability, robust messaging standards, ultra-low processing costs, and open fintech participation, this framework has enabled a surge of new and distinct experiences like offline payments (LiteX), conversational payments, tap and pay, EMI on QR, UPI for IPO subscriptions, UPI Circle, Credit Card on UPI, and UPI Autopay. UPI’s sophisticated technology framework, built for transparency, efficiency, and scalability, is facilitating a seamless transition from embedded payments to embedded finance.
This positions UPI not only as a transactional platform but also as a foundation for unlocking entirely new levels of financial innovation and accessibility. As India advances towards its Viksit Bharat 2047 vision, UPI is projected to remain a critical component of the nation’s digital transformation, strengthening financial infrastructure, enhancing inclusion, and accelerating the transition to a digitally driven economy.