Unified Payments Interface (UPI) QR codes emerged as the fastest-growing digital payment infrastructure in India during the financial year 2024-25, registering a sharp 91.5% year-on-year increase and reaching 657.9 million, according to latest data from the Reserve Bank of India (RBI).
This surge was mainly fueled by the extensive rollout of UPI QR codes by prominent digital payment platforms such as Google Pay, Paytm, and PhonePe, which are actively expanding their merchant and user base across the country.
While UPI adoption skyrocketed, the growth in card-based payments lagged. Credit card transactions saw a modest 7.94% growth, signaling a slowdown compared to previous years. Debit cards showed even slower momentum, with a 2.7% rise, bringing the total number of debit cards in circulation to 991 million.
As of April 2025, the number of banks active on the UPI network climbed to 668. Bank officials believe this growing participation will significantly boost transaction volume and value in the near term.
In March 2025, UPI transactions hit a record ₹24.77 lakh crore, reflecting a 25% increase in value and a 36% rise in transaction volume compared to the same period last year.
According to the RBI’s annual report, UPI accounted for 79.7% of total digital payment volumes in FY24, up from 73.4% in FY23. Just a few years ago in FY20, this share was 36.8%, underscoring UPI’s meteoric rise in a short span.
To further enhance awareness and adoption, the RBI continues its “Har Payment Digital” campaign, aimed at encouraging digital payment usage across rural and urban India.
In a move to enhance user convenience, the RBI has allowed the National Payments Corporation of India (NPCI) to revise transaction limits for in-person UPI-based merchant payments, based on demand and with necessary safeguards.
This policy shift is expected to make UPI even more adaptive to user needs, promoting its use in high-value retail transactions as well.
The National Payments Corporation of India (NPCI) is the umbrella organization that operates retail payments and settlement systems in India. Established in 2008 as a "not-for-profit" company under Section 8 of the Companies Act 2013, NPCI was initiated by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007. Its primary goal is to create a robust, secure, and efficient payment infrastructure in the country, promoting a less-cash economy and enhancing financial inclusion.
To provide affordable and robust payment systems for the common person.
To integrate various payment systems into nationwide uniform and standard business processes.
To improve operational efficiency and expand the reach of retail payment systems through innovation and technology.
Design and Development of Payment Systems: NPCI is responsible for creating and operating key payment systems in India, including UPI, IMPS, RuPay, NACH, and BBPS.
Interbank Settlement: It acts as an intermediary for settling interbank transactions, ensuring the smooth transfer of funds.
Setting Rules and Guidelines: NPCI prescribes the rules, regulations, and guidelines for the operation of its various payment systems.
Approving Participants: NPCI approves the participation of banks, Payment Service Providers (PSPs), and Third-Party Application Providers (TPAPs) in its systems.
Ensuring Security and Efficiency: NPCI is committed to providing a safe, secure, and efficient payment infrastructure.
Dispute Management: It plays a role in dispute resolution for transactions processed through its systems.
Promoting Financial Inclusion: NPCI develops payment solutions that cater to the underbanked and unbanked populations.
Unified Payments Interface (UPI): A real-time payment system allowing users to transfer funds instantly between bank accounts using a mobile phone.
RuPay: India's domestic card scheme, offering debit, credit, and prepaid cards.
Immediate Payment Service (IMPS): Enables instant fund transfers between banks 24/7.
Aadhaar enabled Payment System (AePS): Allows financial transactions using Aadhaar authentication.
National Automated Clearing House (NACH): Facilitates bulk transactions like salary payments and utility bill collections.
Bharat Bill Payment System (BBPS): An integrated platform for paying various utility bills.
National Electronic Toll Collection (NETC): Uses FASTags for automatic toll payments.
BHIM (Bharat Interface for Money): A UPI-based mobile payment application developed by NPCI.
UPI Lite: An on-device wallet for small-value UPI transactions.
NPCI has been instrumental in revolutionizing the digital payments landscape in India, making transactions faster, more accessible, and secure. Its continuous focus on innovation and financial inclusion has positioned India as a leader in digital payments globally.
With a record-breaking surge in QR code deployments and increasing support from both public and private sectors, UPI continues to redefine India's digital economy. While traditional payment methods like credit and debit cards are growing at a slower pace, UPI’s ease of use, real-time processing, and government support ensure its continued dominance.