How has UPI's share surged to 83.7% in digital transactions for FY25?
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Synopsis
The Unified Payments Interface (UPI) has achieved remarkable growth in India's digital payments sector, now accounting for 83.7% of total transactions. This significant rise showcases India's leadership in global real-time payments, with UPI transactions skyrocketing by 41%. The RBI's report highlights a commitment to expanding UPI's reach internationally.
Key Takeaways
- UPI's transaction share rose to 83.7% in FY25.
- UPI processed 185.8 billion transactions.
- India holds 48.5% of the global real-time payments market.
- Total digital payments grew to 221.9 billion transactions.
- RBI plans to expand UPI to 20 countries by 2028-29.
Mumbai, May 30 (NationPress) The Unified Payments Interface (UPI) has further solidified its leadership in India's digital payments landscape, with its share of total transaction volume escalating to 83.7 percent in the fiscal year 2024-25, up from 79.7 percent in the prior year.
The Reserve Bank of India (RBI)'s annual report indicates that UPI enabled 185.8 billion transactions during 2024-25, marking a remarkable 41 percent increase year-over-year. In terms of value, UPI transactions surged to Rs 261 lakh crore, rising from Rs 200 lakh crore in FY24.
According to the RBI, UPI's success has positioned India as a leader in the global real-time payments sector, holding a share of 48.5 percent by volume.
The overall digital payments in India, which encompass transactions via various payment systems, card networks, and prepaid payment instruments (PPIs), expanded by 35 percent to 221.9 billion in FY25, up from 164.4 billion in FY24. The value of total digital payments also saw a significant rise of 17.97 percent, reaching Rs 2,862 lakh crore.
Credit card transactions rose to 4.7 billion in FY25 from 3.5 billion in FY24, while debit card transactions experienced a steep 29.5 percent drop, decreasing to 1.6 billion. The proportion of digital transactions in the overall volume of non-cash retail payments reached 99.9 percent in FY25, compared to 99.8 percent in FY24.
The RBI reiterated its commitment to expanding UPI to 20 countries by 2028–29. Acceptance of Indian UPI applications via QR codes has already been established in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE, enabling Indian tourists, students, and business travelers to make payments with their domestic UPI apps.
While there was a reduction in the total incidence of fraud cases, the amount related to fraud surged to Rs 36,014 crore, primarily due to increasing fraudulent advances. In contrast, both card and internet fraud volumes saw a significant decline, dropping from 29,802 in FY24 to 13,516 in FY25.
Point of View
I view the surge in UPI's share as a testament to India's innovative approach to digital finance. The RBI's strategic vision for UPI's global outreach not only enhances our economic stature but also empowers citizens and businesses alike. It’s essential that we remain vigilant about the accompanying risks, as our financial landscape evolves.
NationPress
08/06/2025
Frequently Asked Questions
What is UPI?
Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India, facilitating instant money transfer between bank accounts through mobile devices.
How many transactions did UPI facilitate in FY25?
UPI facilitated a staggering 185.8 billion transactions in the fiscal year 2024-25.
What percentage of digital payments does UPI account for?
UPI accounts for 83.7% of the total digital transaction volume in India for FY25.
What countries are accepting UPI?
UPI is being accepted in several countries including Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.
Has UPI seen an increase in fraud cases?
While the incidence of fraud cases has declined, the total amount related to fraud has tripled to Rs 36,014 crore.
