UPI: India’s Digital Payment Revolution Outpaces Global Leaders

India’s Unified Payments Interface (UPI) has overtaken Visa as the world’s top real-time payment system, processing over 650 million daily transactions. Launched in 2016 by NPCI, UPI now handles 83.7% of India’s digital transactions, powering 185.8 billion in FY25—a 41% year-on-year growth. Beneficiaries include fintech firms, banks, and CPaaS providers, while larger players see minimal impact. With global expansion underway and innovations like embedded credit and IoT payments gaining traction, UPI is setting a global standard for digital payments.

India's Unified Payments Interface (UPI) has achieved an extraordinary milestone, overtaking Visa as the world’s leading real-time payment system. With over 650 million daily transactions, UPI has cemented its position as a transformative force in the global digital payments landscape.

Former NITI Aayog CEO and India’s G20 Sherpa, Amitabh Kant, celebrated this achievement, emphasizing its unmatched growth trajectory. In just nine years since its launch, UPI has redefined the way payments are made in India and has become a model for digital economies worldwide.

A Record-Breaking Journey

In the fiscal year 2024, Visa averaged 639 million daily transactions, according to its annual report. UPI, introduced in April 2016 by the National Payments Corporation of India (NPCI) under the Reserve Bank of India’s guidance, has surpassed this figure and become the backbone of India’s digital economy.

UPI accounted for 83.7% of all digital transactions in India in FY25, up from 79.7% the previous year. It powered a staggering 185.8 billion transactions, marking a 41% year-on-year growth. This translates to a global market share of 48.5% in real-time payment volumes, as highlighted in the Reserve Bank of India’s FY25 report.

The financial value of UPI transactions is equally impressive. In May 2025 alone, UPI facilitated ₹25.14 lakh crore worth of payments—12 times the combined value of card payments in the country. This underscores India’s rapid transformation into a fintech powerhouse.

Key Beneficiaries of UPI’s Expansion

UPI’s dominance has created new opportunities for various players in the payments ecosystem. Companies like Infibeam Avenues, which runs the CCAvenue gateway, stand to benefit significantly. With a majority of its revenues tied to payment gateway services, any incremental gains in Merchant Discount Rates (MDR) or new cross-border corridors, such as the Gulf Cooperation Council (GCC), directly enhance its margins.

Fino Payments Bank, with its focus on rural micro-merchants, is another notable player. The government’s 0.15% subsidy on UPI person-to-merchant (P2M) payments below ₹2,000 has a significant impact on its profit and loss statement. Similarly, Yes Bank, which holds the largest share of merchant-side UPI traffic, benefits from revenue streams like escrow, API fees, and the anticipated credit-line interchange.

In the communications platform as a service (CPaaS) space, companies like Route Mobile and Tanla Platforms are thriving. The surge in UPI transaction volumes has driven a corresponding increase in application-to-person (A2P) messaging traffic, which powers critical services like one-time passwords (OTPs) and risk-related APIs.

Why Larger Players Are Less Impacted

For giants like HDFC, ICICI, Infosys, and TCS, the impact of UPI remains minimal due to their diversified revenue streams. According to industry experts, these companies are less reliant on payment volumes, with UPI contributing only marginally to their overall earnings.

In contrast, smaller, more specialized players are seeing significant benefits. With new MDRs, credit-line interchanges, and government subsidies on small-ticket UPI transactions, these firms are poised for meaningful earnings growth and enhanced stock valuations.

The Future of UPI

Reeju Datta, co-founder of Cashfree Payments, notes that UPI’s seamless, high-frequency payment capabilities make it a boon for industries like food delivery, ride-hailing, gaming, and subscription services. As UPI AutoPay and instant disbursal solutions reduce friction, global and local businesses alike are adapting to UPI-first models to stay competitive.

Deepak Chand Thakur, co-founder and CEO of NPST, envisions the next wave of UPI growth driven by innovative use cases. As connected devices evolve into payment touchpoints, new opportunities in embedded credit, B2B transactions, IoT-enabled payments, and cross-border corridors are emerging. Thakur emphasizes the need for modernized infrastructure, intelligent orchestration layers, and real-time risk management to support this growth.

A Global Standard in the Making

With UPI already accepted by merchants in seven countries and plans to expand further by 2028-29, it is becoming a global benchmark for instant payments. As Amitabh Kant aptly put it, UPI is leading the digital payment revolution, extending its influence from India to the world.

The journey of UPI is a testament to India’s innovative spirit and its commitment to financial inclusion. As it continues to evolve, UPI is not just shaping the future of payments in India but also setting the stage for a global digital payments revolution.