Is India's UPI the World's Largest Real-Time Payment System?
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Synopsis
In a groundbreaking development, the IMF has recognized India's UPI as the largest real-time payment system globally. This achievement highlights the significant role of digital payments in India's economy and the government's proactive measures to support small merchants. Discover how UPI has transformed the payment landscape and what this means for the future of digital transactions.
Key Takeaways
- IMF recognizes UPI as the largest retail fast-payment system globally.
- UPI holds a 49% market share in global real-time payments.
- Government initiatives are in place to assist small merchants.
- Over 5.45 crore digital touchpoints have been established through PIDF.
- Ongoing efforts aim to promote UPI across various sectors.
New Delhi, Dec 8 (NationPress) The International Monetary Fund (IMF) has officially acknowledged India's Unified Payments Interface (UPI) as the largest retail fast-payment system globally based on transaction volume, as reported to Parliament on Monday.
Minister of State for Finance Pankaj Chaudhary conveyed this information to the Lok Sabha in a written response to an inquiry, emphasizing this recognition in the IMF’s report titled ‘Growing Retail Digital Payments (The Value of Interoperability)’, released in June 2025.
Additionally, according to the ACI Worldwide report on ‘Prime Time for Real-Time’ 2024, UPI leads the world with a 49 percent share in real-time payment systems, boasting a transaction volume of 129.3 billion. Brazil ranks second with a 14 percent market share and a transaction volume of 37.4 billion, while Thailand and China follow, holding market shares of 8 percent and 6 percent respectively, with transaction volumes of 20.4 billion and 17.2 billion.
Minister Chaudhary noted that to assist small merchants in embracing digital payment solutions like UPI, the government, alongside the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), has implemented numerous initiatives. These include an incentive scheme aimed at promoting low-value BHIM-UPI transactions and the Payments Infrastructure Development Fund (PIDF), which provides grants to banks and fintech companies for establishing digital payment infrastructure, such as POS terminals and QR codes, in tier-3 to 6 centers.
As of October 31, 2025, approximately 5.45 crore digital touchpoints have been established through the PIDF across tier-3 to 6 areas. Furthermore, during FY 2024-25, around 56.86 crore QR codes were deployed to approximately 6.5 crore merchants, according to the minister.
The government, RBI, and NPCI are actively promoting digital transactions via RuPay and UPI across various sectors, including public services, transportation, and e-commerce platforms nationwide, he added.
Point of View
India's UPI stands out as a transformative force, showcasing the country's commitment to technological advancement. The recognition from the IMF underscores the effectiveness of UPI in facilitating seamless transactions, which is essential for both consumers and small merchants. This development is a testament to India’s growing influence in the global digital economy.
NationPress
09/12/2025
Frequently Asked Questions
What is UPI?
UPI, or Unified Payments Interface, is a digital payment system that allows users to transfer money between bank accounts instantly using a mobile device.
Why is UPI significant?
UPI is significant as it streamlines the payment process, making transactions faster and more efficient, thereby encouraging digital payments among the populace.
How does UPI compare to other payment systems globally?
UPI outperforms other global payment systems by holding a substantial market share and transaction volume, making it the leading real-time payment system worldwide.
What initiatives support UPI adoption?
Various initiatives, including incentive schemes and the Payments Infrastructure Development Fund, have been implemented to promote UPI adoption among small merchants.
What future developments can we expect for UPI?
With ongoing government support and technological advancements, UPI is expected to expand its reach and enhance its functionalities, further solidifying its position in the digital payments landscape.
