India has rewritten the rules of the global digital economy. According to a recent note from the International Monetary Fund (IMF), titled “Growing Retail Digital Payments: The Value of Interoperability,” India leads the world in fast payments, and at the heart of this groundbreaking transformation is the Unified Payments Interface—better known as UPI.
Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionized the way Indians send, receive, and manage money. More than just a tool, it has become a national force, driving financial inclusion and redefining how the world sees digital transactions.
India: The UPI Phenomenon – Simplicity Meets Power
UPI simplifies digital transactions by allowing users to link multiple bank accounts into a single mobile platform. With just a few taps, anyone can pay a merchant, split a bill, or transfer money to a friend—instantly and securely. What makes UPI stand out is not just its technology but its accessibility, efficiency, and the trust it has earned among nearly half a billion users.
In June 2025 alone, UPI processed over 18.39 billion transactions, amounting to a staggering ₹24.03 lakh crore. Compared to June 2024’s 13.88 billion transactions, this represents a remarkable 32% year-on-year growth—an indicator of UPI’s unstoppable momentum.
A Digital Engine for Financial Inclusion
According to the Press Information Bureau’s (PIB) Sunday backgrounder, UPI has pulled India away from reliance on cash and card-based systems and pushed it toward a digital-first economy. Today, over 491 million individuals and 65 million merchants depend on UPI for quick, secure, and low-cost financial transactions.
“This growing use is a strong sign that India is moving steadily towards a cashless economy,” PIB noted.
With 675 banks integrated into the UPI platform, the system ensures universal interoperability. Regardless of which bank a person holds an account with, payments can be made seamlessly, anytime, anywhere.
Currently, UPI accounts for 85% of all digital transactions in India and nearly 50% of all real-time digital payments globally. This isn’t just market penetration—this is global leadership in action.
India: Beyond Borders – UPI’s Global Footprint Expands
India’s leadership in fast payments is no longer confined within its borders. UPI is now live in seven countries: UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. The recent launch in France marks its entry into the European market, offering Indian travelers and residents the convenience of seamless payments without the friction of currency conversion.
India is also advocating for UPI’s adoption as a standard across the BRICS nations, a move that could further enhance cross-border remittances, deepen financial inclusion, and solidify India’s role as a digital technology powerhouse.
“If this happens, it will improve remittances, boost financial inclusion and raise India’s profile as a global tech leader in digital payments,” the PIB report noted.
Building the Foundation: Jan Dhan and Beyond
UPI’s success story is rooted in visionary groundwork. The Jan Dhan Yojana, launched in 2014, was the first major leap toward financial inclusion. As of July 9, 2025, over 55.83 crore Jan Dhan accounts have been opened, giving millions access to formal banking for the first time. These accounts became a gateway for UPI adoption, enabling direct benefit transfers and encouraging saving habits among underserved communities.
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