India is now the global leader in fast digital payments, thanks to the success of UPI (Unified Payments Interface). A new report by the International Monetary Fund (IMF) says India has set an example for the world with its digital payment system.
What Is UPI?
UPI is a real-time payment system that lets people send and receive money using a mobile app. It was launched in 2016 by the National Payments Corporation of India (NPCI). You can link all your bank accounts to one app and make quick, easy, and secure payments.
UPI Growth in Numbers
In June 2025, UPI handled over 18.39 billion transactions
The total value was more than Rs 24.03 lakh crore
This is a 32% increase from June 2024
UPI now processes over 640 million transactions daily
Today, UPI makes up 85% of India’s digital payments. It connects 491 million users, 65 million merchants, and 675 banks across India.
UPI Beats Visa in Daily Transactions
UPI has become the world’s top real-time payment system, ahead of Visa. It now handles more daily transactions than any other payment system in the world.
Globally, UPI powers nearly 50% of all real-time digital payments.
UPI Is Expanding Globally
UPI is now available in 7 countries outside India:
UAE
Singapore
Bhutan
Nepal
Sri Lanka
France
Mauritius
UPI’s launch in France marks its first step into Europe, making payments easier for Indians living or traveling abroad.
India is also working to expand UPI to BRICS countries, to improve cross-border payments and boost financial inclusion.
Why UPI Is So Successful: Interoperability
Before UPI, most apps only worked within their own system. UPI changed that. It allows payments between any app and any bank. This is called interoperability.
Benefits of interoperability:
Freedom of choice: Users can choose any app they trust
Better services: Apps compete to offer more features and better security
How UPI Helps People in Daily Life
Send money anytime – 24×7 payments from your phone
One app for all banks – Manage all accounts in one place
Safe and fast – Secure two-step payment process
Privacy protected – Just use a UPI ID, not bank details
Pay by QR code – Simple payments at shops
No cash-on-delivery – Pay online for products and services
Pay bills easily – Recharge phones, pay electricity, water bills, etc.
Help available – Report problems directly through the app
The Digital Foundation Behind UPI
UPI’s success comes from strong digital foundations built over the years.
1. Jan Dhan Yojana
The scheme helped open over 55.83 crore bank accounts, giving more people access to formal banking.
2. Aadhaar Digital Identity
Over 142 crore Aadhaar cards have been issued. Aadhaar made it easy to verify identity and receive benefits directly.
3. 5G and Internet Growth
India has over 4.74 lakh 5G towers, covering almost all districts. Internet costs dropped from ₹308/GB in 2014 to just ₹9.34/GB in 2022. More people now use smartphones and digital services.
Conclusion
India’s UPI is a global success story. It started as a simple payment tool and is now the backbone of a digital-first economy. It has made payments faster, easier, and safer for everyone.
UPI is not just for India anymore — it’s going global. As more countries adopt UPI, India is shaping the future of digital payments worldwide.
Key Facts Recap
UPI processes 18+ billion transactions/month
Rs 24 lakh crore processed in June 2025 alone
UPI leads globally in daily transactions
Available in 7 countries and expanding further
85% of India’s digital payments happen through UPI
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