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India Today
10-07-2025
- Business
- India Today
IMF praises UPI, says it makes India global leader in fast payment
India now makes faster payments than any other country with the quick growth of UPI, and the usage of other instruments, including debit and credit cards, is on the decline, according to an IMF Payments Interface is an instant and real-time payment system developed by NPCI to facilitate inter-bank transactions through mobile Fintech Note titled 'Growing Retail Digital Payments: The Value of Interoperability' said that since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India."India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the note note presents evidence consistent with this framework using granular data covering the universe of transactions on India's UPI, an interoperable platform that has become the world's largest retail fast payment system by volume."Since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India," the fintech note Notes offer practical advice from IMF staff members to policymakers on important said that interoperable payment systems, such as UPI, are alternatives to closed-loop systems that could also foster the adoption of digital payments. Such systems allow for seamless payments between users of different payment providers."Importantly, total digital payments also rise relative to a proxy for cash usage," it note further said that estimating cash usage is difficult because cash transactions can occur anonymously and may not be recorded in any ledger, especially in the informal sector."However, we can approximate cash usage with the value of automated teller machine (ATM) withdrawals in each district. When we measure the impact of integration on transaction values relative to cash withdrawals, we find a very similar picture," it note said that total digital payments relative to cash withdrawals rise substantially and persistently more after integration in districts that face greater increases in de facto evidence suggests that interoperability can indeed support the adoption of digital payments and encourage a transition away from cash, it fintech note has been prepared by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez authors further said that as the interoperable platform matures and more providers join, policymakers should watch for the emergence of dominant private providers and be prepared to take action to maintain a fully open, interoperable and competitive system."Payment authorities should use a range of metrics to identify potential threats to this goal and tailor any responses to the specific underlying anti-competitive mechanism," they all stages of development, the system operator should consult with current and potential private sector participants to ensure that its design choices support the health of the interoperable ecosystem, the note said.- EndsTrending Reel
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Business Standard
10-07-2025
- Business
- Business Standard
India now makes fastest payments globally, driven by UPI: IMF note
India has emerged as the global leader in fast payments, driven by the widespread adoption of the Unified Payments Interface (UPI), according to a recent note published by the International Monetary Fund (IMF). The note, titled Growing Retail Digital Payments: The Value of Interoperability, authored by IMF staff members Alexander Copestake, Divya Kirti and Maria Soledad Martinez Peria, highlights a decline in the use of debit and credit cards and a shift away from cash since UPI was introduced in 2016. 'India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen,' the report stated, as quoted by PTI. The IMF note uses nationwide data to examine the impact of interoperable payment systems like UPI on digital transaction growth. These systems allow users of different payment service providers to transact seamlessly. 'Since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India,' the authors wrote. Because cash transactions often occur in informal sectors and remain unrecorded, the IMF uses ATM withdrawal data at the district level as a proxy to measure cash usage. 'Total digital payments relative to cash withdrawals rise substantially and persistently more after integration in districts that face greater increases in de facto interoperability. This evidence suggests that interoperability can indeed support adoption of digital payments and encourage a transition away from cash,' the note added. Recommendations from IMF The authors recommend that as more service providers join systems like UPI, policymakers must closely monitor the rise of dominant players to preserve market competition. 'Payment authorities should use a range of metrics to identify potential threats to this goal and tailor any responses to the specific underlying anti-competitive mechanism,' the report said. It also suggests that system operators maintain regular dialogue with both existing and new private sector participants to ensure the ecosystem remains inclusive and competitive. June UPI data In June, UPI transactions declined marginally by 1.5 per cent to 18.4 billion, down from 18.68 billion in May, according to NPCI data. The overall transaction value fell by 4 per cent to ₹24.04 trillion, compared to ₹25.14 trillion the previous month. However, on a year-on-year basis, transaction volume rose 32 per cent and value increased 20 per cent. Daily transaction volumes grew from 602 million in May to 613 million in June, even as the average daily transaction value fell slightly to ₹80,131 crore from ₹81,106 crore.
Mint
10-07-2025
- Business
- Mint
India tops global fast payments race, UPI processes over 18 billion transactions per month: IMF report
India now leads the world in fast payments, thanks to the rapid growth of the Unified Payments Interface (UPI), while the use of other payment methods like debit and credit cards is falling, according to a report by the International Monetary Fund (IMF). UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows people to make instant bank-to-bank transfers using their mobile phones. In its Fintech Note titled 'Growing Retail Digital Payments: The Value of Interoperability', the IMF said that since UPI was launched in 2016, its use has soared, while cash usage and other forms of payment have started to decline. Today, UPI handles over 18 billion transactions every month, making it the most widely used digital payment system in India. "India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the note said. The note presents evidence consistent with this framework using granular data covering the universe of transactions on India's UPI, an interoperable platform that has become the world's largest retail fast payment system by volume. "Since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India," the fintech note said. Fintech Notes offer practical advice from IMF staff members to policymakers on important issues. It said that interoperable payment systems, such as UPI, are alternatives to closed-loop systems that could also foster the adoption of digital payments. Such systems allow for seamless payments between users of different payment providers. "Importantly, total digital payments also rise relative to a proxy for cash usage," it said. The note further said that estimating cash usage is difficult because cash transactions can occur anonymously and may not be recorded in any ledger, especially in the informal sector. "However, we can approximate cash usage with the value of automated teller machine (ATM) withdrawals in each district. When we measure the impact of integration on transaction values relative to cash withdrawals, we find a very similar picture," it said. The note said that total digital payments relative to cash withdrawals rise substantially and persistently more after integration in districts that face greater increases in de facto interoperability. This evidence suggests that interoperability can indeed support the adoption of digital payments and encourage a transition away from cash, it added. The fintech note has been prepared by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez Peria. The authors further said that as the interoperable platform matures and more providers join, policymakers should watch for the emergence of dominant private providers and be prepared to take action to maintain a fully open, interoperable and competitive system. "Payment authorities should use a range of metrics to identify potential threats to this goal and tailor any responses to the specific underlying anti-competitive mechanism," they said. At all stages of development, the system operator should consult with current and potential private sector participants to ensure that its design choices support the health of the interoperable ecosystem, the note said.( With inputs from news agency PTI)
NDTV
10-07-2025
- Business
- NDTV
India Now Makes Faster Payments Than Any Other Country: IMF Note On UPI
New Delhi: India now makes faster payments than any other country with the quick growth of UPI, and the usage of other instruments, including debit and credit cards, is on the decline, according to an IMF note. Unified Payments Interface is an instant and real-time payment system developed by NPCI to facilitate inter-bank transactions through mobile phones. IMF's Fintech Note titled 'Growing Retail Digital Payments: The Value of Interoperability' said that since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India. "India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the note said. The note presents evidence consistent with this framework using granular data covering the universe of transactions on India's UPI, an interoperable platform that has become the world's largest retail fast payment system by volume. "Since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India," the fintech note said. Fintech Notes offer practical advice from IMF staff members to policymakers on important issues. It said that interoperable payment systems, such as UPI, are alternatives to closed-loop systems that could also foster the adoption of digital payments. Such systems allow for seamless payments between users of different payment providers. "Importantly, total digital payments also rise relative to a proxy for cash usage," it said. The note further said that estimating cash usage is difficult because cash transactions can occur anonymously and may not be recorded in any ledger, especially in the informal sector. "However, we can approximate cash usage with the value of automated teller machine (ATM) withdrawals in each district. When we measure the impact of integration on transaction values relative to cash withdrawals, we find a very similar picture," it said. The note said that total digital payments relative to cash withdrawals rise substantially and persistently more after integration in districts that face greater increases in de facto interoperability. This evidence suggests that interoperability can indeed support the adoption of digital payments and encourage a transition away from cash, it added. The fintech note has been prepared by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez Peria. The authors further said that as the interoperable platform matures and more providers join, policymakers should watch for the emergence of dominant private providers and be prepared to take action to maintain a fully open, interoperable and competitive system. "Payment authorities should use a range of metrics to identify potential threats to this goal and tailor any responses to the specific underlying anti-competitive mechanism," they said. At all stages of development, the system operator should consult with current and potential private sector participants to ensure that its design choices support the health of the interoperable ecosystem, the note said.
Time of India
10-07-2025
- Business
- Time of India
UPI: India tops global digital payment speed charts; IMF highlights fall in cash and card use
India is ahead of all other nations in making faster payments, driven by the rapid growth of the Unified Payments Interface (UPI), while the use of debit and credit cards is declining, according to an IMF Fintech Note. UPI, an instant real-time payment system developed by the National Payments Corporation of India (NPCI), enables inter-bank transactions via mobile phones and has become the world's largest retail fast payment system by volume. The IMF's Fintech Note, titled Growing Retail Digital Payments: The Value of Interoperability, noted a sharp rise in UPI usage since its launch in 2016, accompanied by a fall in cash usage indicators. "India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the note said. UPI now processes over 18 billion transactions each month and dominates the landscape of electronic retail payments in India. "Since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India," the note reiterated. The IMF pointed to UPI's open and interoperable nature as a key factor in its success, contrasting it with closed-loop payment systems. Interoperability, the note said, allows users of different providers to transact seamlessly, encouraging broader adoption of digital payments. "Importantly, total digital payments also rise relative to a proxy for cash usage," it added, quoted by PTI. Acknowledging the challenges in tracking cash usage, the note said, "Estimating cash usage is difficult because cash transactions can occur anonymously and may not be recorded in any ledger, especially in the informal sector." "However, we can approximate cash usage with the value of automated teller machine (ATM) withdrawals in each district. When we measure the impact of integration on transaction values relative to cash withdrawals, we find a very similar picture," it said. The IMF found that digital payments saw a significant and lasting rise in districts where interoperability increased the most. This, it said, is clear evidence that interoperability helps promote digital payments and shift usage away from cash. The Fintech Note, authored by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez Peria, also advised policymakers to remain alert as the UPI ecosystem expands. "As the interoperable platform matures and more providers join, policymakers should watch for the emergence of dominant private providers and be prepared to take action to maintain a fully open, interoperable and competitive system," the authors said. "Payment authorities should use a range of metrics to identify potential threats to this goal and tailor any responses to the specific underlying anti-competitive mechanism," they said. The note also advised that at every stage of development, the system operator should engage with both current and potential private sector players to ensure that design decisions support a healthy interoperable environment. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
