UPI Claims 81% of Retail Digital Payments in FY25: Government Report
Synopsis
In a significant announcement, Finance Minister Nirmala Sitharaman revealed that UPI holds an impressive 81% share of retail digital payments in FY25, highlighting its global leadership. This growth reflects a collective effort from various stakeholders in India.
Key Takeaways
UPI claimed 81% share of retail digital payments in FY25.
Volume of transactions soared from 7,176.9 crore (FY22) to 22,167.9 crore (FY25).
Significant growth supported by government, RBI, and NPCI efforts.
Digital payment transaction value increased to Rs 849.12 lakh crore .
Challenges include cybersecurity threats and digital literacy gaps.
New Delhi, March 16 (NationPress) Finance Minister Nirmala Sitharaman announced on Monday that the Unified Payments Interface (UPI) represented approximately 81 percent of the overall retail digital payment transactions in FY25, solidifying its status as the largest real-time retail payment system globally.
In response to various inquiries in the Lok Sabha, Sitharaman revealed that the total number of retail digital payment transactions surged from 7,176.9 crore in FY22 to 22,167.9 crore in FY25.
India's retail digital payment landscape has experienced remarkable growth recently, fueled by the collaborative efforts of the government, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI).
“In terms of value, digital payment transactions rose from Rs 457.44 lakh crore in FY22 to Rs 849.12 lakh crore in FY25,” she stated.
The minister noted that the growth trajectory indicates a digital payments volume increase of 58.42 percent in FY23, followed by 44.39 percent in FY24 and 35.04 percent in FY25.
Regarding value, transactions expanded by 28.41 percent in FY23, 22.47 percent in FY24, and 18.04 percent in FY25.
“The expansion of retail digital payments, including UPI, is propelled by various factors such as increased smartphone usage, Aadhaar-enabled authentication, e-KYC processes, broader financial inclusion, and the growth of merchant acceptance facilities in both urban and rural regions,” Sitharaman explained.
However, she also pointed out that the surge in digital payments has introduced certain challenges, such as cybersecurity threats, digital adoption disparities, literacy and awareness issues, and connectivity limitations.
To combat digital financial fraud, multiple protective measures have been implemented by the government, RBI, and NPCI.
Moreover, the RBI and banks regularly conduct awareness campaigns through SMS alerts, radio broadcasts, and other outreach programs to mitigate cyber fraud, she added.
Point of View
It is essential to recognize the pivotal role that UPI plays in modernizing India's financial ecosystem. The government's focus on digital payments signals a commitment to enhancing financial inclusion and accessibility for all citizens. However, the challenges highlighted by the minister must not be overlooked as they are critical for safeguarding consumers in this rapidly evolving landscape.
NationPress
8 May 2026
Frequently Asked Questions
What percentage of digital payments does UPI hold?
UPI accounted for approximately 81% of total retail digital payment transactions in FY25.
What factors contributed to the growth of digital payments in India?
Factors include increased smartphone penetration, Aadhaar-enabled authentication, e-KYC, financial inclusion, and expanded merchant infrastructure.
What challenges are associated with the increase in digital payments?
Challenges include cybersecurity risks, gaps in digital adoption, literacy and awareness issues, and network constraints.
How is the government addressing digital financial fraud?
The government, along with RBI and NPCI, has implemented safeguards and conducts awareness campaigns to prevent cyber fraud.
