UPI’s Dominance in India’s Digital Payment Landscape

January 28, 2025

The United Payments Interface (UPI) has fundamentally transformed India’s digital payment landscape. By the end of 2024, UPI accounted for 83% of the total payment volume in India. This is increase from 34% in 2019.

Growth Metrics of UPI

The Reserve Bank of India (RBI) has reported that UPI transactions surged to 17,221 crore, contributing to an overall payment volume of 20,787 crore.
In 2018, UPI facilitated 375 crore transactions.
By 2024, this number skyrocketed to 17,221 crore.
The value of UPI transactions also saw a dramatic rise, increasing from Rs 5.86 lakh crore in 2018 to Rs 246.83 lakh crore in 2024.
This represents a compounded annual growth rate (CAGR) of 89.3% in volume and 86.5% in value over five years.

Impact on Other Payment Systems

The rise of UPI has led to a decline in the share of other payment systems like RTGS, NEFT, IMPS, credit cards, and debit cards. Their combined share dropped from 66% in 2019 to just 17% by 2024.

Overall Growth of Digital Payments

India’s overall digital payment system has experienced substantial growth. The total payment value rose from Rs 1,775 lakh crore in 2019 to Rs 2,830 lakh crore in 2024. Retail digital payments also surged, with transactions increasing from 162 crore in the financial year 2013 to over 16,416 crore in 2025. This signifies an almost 100-fold growth over a span of 12 years.

Digital Payment Index Performance

The RBI’s Digital Payment Index reflects the impressive expansion of payment infrastructure.
The index grew more than four-fold in six years, reaching 445.50 in March 2024, up from a base of 100 in March 2018.
This growth marks the increasing accessibility and efficiency of digital payment systems in India.

Recent Trends in Digital Transactions

Since 2023, digital transactions have grown 94 times in volume and over 3.5 times in value. Over the past five years, digital payments in India have increased 6.7 times in volume and 1.6 times in value. This results in a five-year CAGR of 45.9% in volume and 10.2% in value, indicating a robust trend towards digitalisation.

« Previous Post Next Post »