UPI drives 85% of India’s digital payments, transaction value jumps to $ 3 Trillion: RBI

The RBI's Payments Systems Report highlights UPI as India's leading retail payment system, accounting for 84.8% of transactions. UPI volumes surged from 1,079 crore in 2019 to 17,221 crore in 2024, with transaction values rising from $221.7 billion to $2.97 trillion. While RTGS dominates high-value transfers, UPI’s ease and efficiency drive its rapid adoption. The report emphasizes UPI's role in India’s shift to a cashless, digital economy.

In a significant milestone for India's digital payment ecosystem, the Unified Payments Interface (UPI) has emerged as the most widely used retail fast payment system in the country, according to the Payments Systems Report released by the Reserve Bank of India (RBI). The report highlights UPI's meteoric rise in both transaction volumes and values over the past five years, solidifying its position as a transformative force in India's financial landscape.

Exponential Growth in UPI Transactions

UPI has witnessed an astronomical surge in usage, with transaction volumes skyrocketing from 1,079 crore in 2019 to an astounding 17,221 crore in 2024. This represents a nearly sixteenfold increase in just five years. Similarly, the total value of UPI transactions has shown a parallel upward trend, growing from $221.7 billion in 2019 to an impressive $2,972.3 billion (approximately $2.97 trillion) in 2024.

The upward momentum continued over the past year, with UPI transaction volumes increasing by 22%. The first half of 2025 (H1 CY25) recorded 143 crore transactions, up from 117 crore during the same period in 2024. Moreover, the value of these transactions rose by 34.7%, reaching $128.1 billion in H1 CY25, compared to $95.2 billion in H1 CY24.

UPI's Dominance in Payment Transactions

The report underscores UPI's dominance in India's payment ecosystem, accounting for a staggering 84.8% of all payment transactions in the first half of 2025. This overwhelming market share is attributed to UPI's user-friendly interface, high efficiency, and 24/7 availability. These factors have made it the preferred choice for consumers and businesses alike, driving its rapid adoption across the nation.

The Role of Other Payment Systems

While UPI rules in terms of transaction volume, other payment systems still hold significant value shares. RTGS (Real-Time Gross Settlement), designed for high-value transactions, leads in terms of transaction value, contributing 68.7% of the total. However, RTGS accounts for a mere 0.1% of the total transaction volume, owing to its focus on large-scale transfers with a minimum transaction amount of approximately $2,410 USD (₹2 lakh).

NEFT (National Electronic Funds Transfer), another popular payment method, represents 3.9% of total transactions by volume but carries 15.1% of the total value. Meanwhile, card payments and check-based transactions play a smaller role, with card payments accounting for 2.7% of transaction volume and 0.8% of transaction value, and checks comprising 0.2% of volume and 2.3% of value.

The Future of Digital Payments in India

The Reserve Bank's report paints a vibrant picture of India's payment ecosystem, with UPI at the forefront of this digital revolution. Its unparalleled growth reflects the evolving preferences of Indian consumers and businesses, who prioritize convenience, speed, and accessibility. While RTGS and NEFT retain their place for high-value transactions, UPI's dominance in retail payments is set to continue reshaping the financial landscape.

As digital payments become increasingly integral to daily life, UPI's success story underscores India's transition to a cashless economy. With ongoing innovations and expanding accessibility, the future of UPI and its impact on India's economy looks brighter than ever.