The International Monetary Fund (IMF), in its June 2025 report “Growing Retail Digital Payments (Value of Interoperability)”, has recognized India’s Unified Payments Interface (UPI) as the world’s largest retail fast payment system.

According to the report, UPI is the largest real-time payment system globally based on transaction volume. Additionally, ACI Worldwide’s “Prime Time for Real-Time 2024” report states that in global real-time payment transactions:

• UPI accounts for nearly 49%, making it the world’s fastest-growing and largest digital payment network.

Major Initiatives Accelerating Digital Payment Adoption in India

The Government of India, the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI) are jointly working to promote digital payments among small merchants and consumers. Key initiatives include:

1. Payment Infrastructure Development Fund (PIDF)

• Provides subsidy support for enabling digital payments in rural and semi-urban areas (Tier-3 to Tier-6).
• Banks and fintech companies receive financial assistance to deploy PoS machines, UPI QR codes, and other digital touchpoints.
• As of 31 October 2025:
• 5.45 crore (54.5 million) digital touchpoints (PoS + QR) have been deployed.

2. BHIM–UPI Incentive Scheme

• Offers incentive amounts to merchants and PSPs to promote low-value UPI transactions.
• Aims to encourage small merchants to adopt cashless payments.
• BHIM (Bharat Interface for Money)
• A mobile payment app developed by NPCI.
• Uses UPI technology to enable simple, secure, and instant bank-to-bank transactions.
• Allows users to send/receive money using UPI ID or by scanning a QR code, making digital payments easy and accessible.

3. RuPay–UPI Expansion

• Promotes UPI and RuPay-based transactions across public services, transport, e-commerce, and government platforms.
• Strengthens India’s integrated digital payment ecosystem.

4. QR Code Deployment

By FY 2024–25:

• 56.86 crore (568.6 million) QR codes deployed
• 6.5 crore (65 million) merchants joined the digital payment network

UPI's Position Compared to Global Real-Time Payment Platforms

The table below shows transaction volumes and global market share of major real-time payment systems worldwide:

Source: ACI Worldwide – Prime Time for Real-Time 2024 Report

UPI Payments in 8 Countries

UPI (Unified Payments Interface) can now be used in 8 countries. The latest addition is Qatar. The countries where UPI is accepted are:-

1. Bhutan – Since 2021, QR-based payments are possible via BHIM.
2. France – UPI was launched in 2024; available in selected cities.
3. Mauritius – Direct UPI payments at partner stores; started in 2024.
4. Nepal – Payments via PhonePe started in 2024; accepted at hotels and restaurants.
5. Singapore – Linked with PayNow; supports retail and P2P transactions.
6. Sri Lanka – UPI accepted at selected merchants; reduces the need for cash.
7. UAE – Popular at many outlets, including Dubai and Abu Dhabi.
8. Qatar – The newest member; UPI accepted at tourist spots and duty-free outlets.

Unified Payments Interface (UPI)

UPI is a real-time payment system in India, developed by NPCI. It enables instant bank-to-bank money transfers using a simple UPI ID, mobile number, or QR code through a smartphone. Multiple bank accounts can be linked in a single app, and the service is available 24×7. UPI has transformed digital payments in India by offering a secure, fast, and easy payment method.

Development & Launch

• Developed by: National Payments Corporation of India (NPCI)
• Regulated by: Reserve Bank of India (RBI)
• Launched in: April 2016

Key Features

• Instant Payments: Real-time fund transfer between bank accounts.
• 24×7 Availability: Works anytime, including holidays.
• One App – Multiple Accounts: Multiple bank accounts can be linked to a single UPI app (Google Pay, PhonePe, etc.).
• Simple Payment Method: No need to write bank details; a UPI ID, mobile number, or QR code is enough.
• Secure: Uses two-factor authentication (2FA) and UPI PIN for protection.
• Wide Usage: Supports P2P (person-to-person), P2M (person-to-merchant), bill payments, collect requests, and more.

How UPI Works ?

1. Link Bank Accounts: Download a UPI app and link your bank account(s).
2. Select the Recipient: Enter their UPI ID, use their mobile number, or scan their QR code.
3. Make Payment: Enter the amount and authenticate using your UPI PIN.
4. Instant Settlement: The money is transferred instantly from your bank to the recipient’s bank.