According to the IMF report titled ‘Growing Retail Digital Payments: The Value of Interoperability’, India leads the world in real-time digital payments, driven by the massive growth of Unified Payments Interface (UPI).
Key Highlights
- UPI handles over 18 billion transactions monthly, comprising 85% of India’s digital payments.
- In June 2025 alone, UPI recorded:
- 18.39 billion transactions
- Worth ₹24.03 lakh crore
- A 32% increase from June 2024
- User base: 491 million users and 65 million merchants
- Bank Integration: 675 banks interconnected via UPI
UPI’s Global Expansion
- UPI is now operaional in 7 countries:
- UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius
- France marks UPI’s first European launch, enabling seamless payments for Indian users without foreign transaction issues.
- India is actively advocating UPI adoption within BRICS, especially after its recent expansion to include six new member nations.
- Global use of UPI is expected to:
- Improve cross-border remittances
- Advance financial inclusion
- Enhance India’s global digital leadership
Foundations of UPI’s Success
- Launched: In 2016 by the National Payments Corporation of India (NPCI)
- Features:
- Multiple bank accounts linked via one mobile app
- Instant peer-to-peer and business transactions
- Minimal cost, easy adoption by small merchants
- Transition:
- Shifted India from cash/card-based economy to a digital-first economy
- Key enabler of low-cost, inclusive payments
Role of Jan Dhan Yojana
- A pivotal factor in UPI’s success is the financial inclusion enabled by PM Jan Dhan Yojana.
- As of July 9, 2025:
- Over 55.83 crore accounts opened
- Helped expand bank access, digital habits, and welfare benefit delivery
India’s Global Standing
- UPI now accounts for:
- 85% of all digital payments in India
- ~50% of global real-time digital payments
- Recognized globally as a model for fast, secure, and inclusive digital finance
Key Facts
- NPCI: Umbrella organization for digital retail payments under RBI and IBA (Indian Banks’ Association)
- UPI Launch Year: 2016
- IMF HQ: Washington D.C., USA
- IMF Managing Director (as of 2025): Kristalina Georgieva
- BRICS Expansion (2024): Included Egypt, Ethiopia, Iran, Saudi Arabia, UAE, and Argentina (Argentina later opted out)
- Jan Dhan Yojana Launch: 28 August 2014
- PayNow: Singapore’s peer-to-peer funds transfer service
- Major Reports Published by IMF: Global Financial Stability Report (GFSR), World Economic Outlook (WEO), Regional Economic Outlook (REO) and Fiscal Monitor