India’s Unified Payments Interface (UPI) has been recognised globally as the world’s largest real-time payment system.
The International Monetary Fund (IMF), in its June 2025 report titled “Growing Retail Digital Payments (The Value of Interoperability)”, highlighted UPI’s leadership in transaction volume.
Supporting this, ACI Worldwide’s “Prime Time for Real-Time 2024” report showed that UPI alone accounts for 49% of all real-time payment transactions worldwide.
This recognition firmly establishes India as a global leader in fintech innovation and digital financial infrastructure.
How UPI Works and Transformed Payments
UPI, developed by the National Payments Corporation of India (NPCI) under the Reserve Bank of India’s (RBI) oversight, was launched in 2016.
It allows users to instantly transfer money between bank accounts using mobile phones, UPI IDs, or QR codes.
UPI supports:
Peer-to-peer and merchant payments
Seamless interoperability across banks and apps
24/7 fund transfers
Zero merchant discount rate (MDR) for most transactions
This system has transformed everyday financial transactions, making cashless payments convenient, fast, and widely accessible.
India Leads Globally in Digital Payments
UPI’s scale is impressive on the global stage.
According to ACI Worldwide, real-time payment systems processed 266.2 billion transactions worldwide in 2024.
India alone accounted for 129.3 billion transactions, nearly half of the global total.
Other countries contributed much less:
Brazil: 37.4 billion (14%)
Thailand: 20.4 billion (8%)
China: 17.2 billion (6%)
South Korea: 9.1 billion (3%)
All other countries: 52.8 billion (20%)
This data shows how India has outpaced even advanced economies in scaling digital payments.
Policy Support and Infrastructure Driving Growth
UPI’s rapid adoption has been supported by strong government policies and initiatives. Key factors include:
Payments Infrastructure Development Fund (PIDF): Helped banks and fintech firms deploy QR codes and point-of-sale systems, especially in smaller towns and rural areas.
Over 5.45 crore digital touchpoints were created by October 2025.
BHIM-UPI Incentive Scheme: Encouraged low-value transactions, making digital payments accessible for all income groups.
Expansion of RuPay and UPI Integration: Integrated across utilities, e-commerce, and transport services, widening everyday usage.
By FY 2024–25, nearly 56.86 crore QR codes were deployed across 6.5 crore merchants nationwide.
These measures have strengthened financial inclusion and supported small merchants with instant, cashless payments without expensive hardware.
UPI’s Global Significance
UPI is emerging as a model for low-cost, interoperable payment systems worldwide.
Countries such as Singapore, UAE, and France are exploring cross-border integration initiatives inspired by UPI.
For India, it showcases the success of the Digital India mission, highlighting how technology and supportive regulation can transform financial behaviour across a billion-strong population.
Summary
UPI is now the world’s largest real-time payment system, handling nearly half of global transactions.
Its success is powered by strong policy support, innovative infrastructure, and a focus on financial inclusion.
By enabling fast, low-cost, and secure payments, UPI has empowered small merchants, simplified daily transactions, and positioned India as a global leader in digital finance.
