How Does UPI Drive 50% of Global Digital Payments?
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Synopsis
UPI has transformed the digital payments landscape, accounting for half of the global market. However, reaching tribal and rural communities remains a daunting challenge. Discover the insights from M. Nagaraju at GFF 2025 and explore the latest innovations in digital payments that could reshape the future of finance.
Key Takeaways
- UPI accounts for 50% of global digital payments.
- Integrating tribal and rural communities into the financial system is challenging.
- No transaction fees will be imposed on UPI transactions.
- New innovations like UPI Multi-Signatory enhance user experience.
- Small Value Transactions via wearable tech promise convenience.
Mumbai, Oct 7 (NationPress) UPI drives an impressive 50% of digital payments worldwide; however, despite this remarkable progress, integrating the entire population residing in tribal and rural areas into the formal financial framework remains a significant hurdle for the government, as stated by M. Nagaraju, Secretary of the Department of Financial Services (DFS), on Tuesday.
During a conversation with reporters at the sixth Global Fintech Fest (GFF) 2025, Nagaraju remarked, "In numerous locations, we encounter obstacles related to internet connectivity. Thus, facilitating offline transactions and those in rural regions poses a challenge."
He also reiterated that the government does not intend to levy fees on transactions conducted through UPI.
Nagaraju underscored the necessity for GST reform, noting that several public sector insurance firms are opting to expand their operations, while others are scaling back commissions. Consequently, each company will formulate its business strategy based on its individual capabilities.
"One fact remains clear: all insurance firms, whether public or private, have lowered their insurance costs owing to GST, which has now become zero," he stated.
Previously at the event, T. Rabi Sankar, Deputy Governor of the Reserve Bank of India, unveiled three pivotal digital payment innovations: UPI Multi-Signatory, Small Value Transactions using wearable glasses through UPI Lite, and foreign exchange on Bharat Connect.
The Multi-Signatory Accounts feature will facilitate joint accounts on UPI that necessitate authorization from one or multiple signatories for seamless payment execution.
Signatories can easily utilize any UPI app to manage associated bank accounts, making the experience more convenient and efficient while boosting transaction speed.
The Small Value Transactions feature via wearable glasses will enable users to perform hands-free and secure transactions by simply scanning a QR code, authenticating, and finalizing payments through voice commands on Smart Glasses, thereby eliminating the need for a mobile device or PIN entry.
The Deputy Governor also introduced the integration of the FX Retail Platform with Bharat Connect, allowing retail customers to access foreign currency through their preferred payment or banking applications linked with the Bharat Connect (BBPS) platform.
Point of View
While UPI’s growth is commendable, the real test lies in ensuring financial inclusivity for marginalized communities. The government must prioritize accessibility to internet services and streamline processes to incorporate rural and tribal populations into the financial ecosystem. As we navigate this evolution in payments, the focus should remain on equitable access and innovative solutions that benefit all.
NationPress
07/10/2025
Frequently Asked Questions
What percentage of global digital payments does UPI account for?
UPI accounts for 50% of digital payments globally.
What challenges does the government face with UPI expansion?
The government faces challenges in integrating tribal and rural communities into the formal financial system.
Will there be transaction fees on UPI payments?
No, the government has no plans to impose fees on transactions made through UPI.
What are the new features announced at the Global Fintech Fest?
New features include UPI Multi-Signatory, Small Value Transactions using wearable glasses via UPI Lite, and forex integration with Bharat Connect.
How will UPI Multi-Signatory accounts function?
UPI Multi-Signatory accounts will require authorization from multiple signatories to execute payments.
