Latest news with #GrowingRetailDigitalPayments:TheValueofInteroperability
News18
21-07-2025
- Business
- News18
How India's Homegrown UPI Became The World's Top Real-Time Payments System
With over 640 million transactions a day, India's UPI has now overtaken Visa in volume. In June 2025, it recorded 18.39 billion transactions worth Rs 24 lakh crore India's Unified Payments Interface (UPI), launched less than a decade ago, has now become the world's most used real-time payment system. In its July 2025 report titled Growing Retail Digital Payments: The Value of Interoperability, the International Monetary Fund (IMF) revealed that UPI now powers 85 per cent of India's digital payments and nearly 60 per cent of global real-time digital transactions. UPI is processing over 640 million transactions every day, surpassing global giant Visa, which sees about 639 million daily. In June 2025, UPI recorded 18.39 billion transactions worth Rs 24 lakh crore, marking a 32 per cent year-on-year jump compared to June 2024. So, what's the story behind this fintech phenomenon? How did a public digital infrastructure, created by a government-backed body, beat multinational corporations at their own game? Here's a deep dive into the rise of UPI. What Is UPI And How Does It Work? Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI) and made available to the public in August 2016. Built atop the Immediate Payment Service (IMPS) infrastructure, UPI allows users to link multiple bank accounts into one mobile app, enabling instant fund transfers, peer-to-peer payments, merchant transactions, and even recurring bill payments. Unlike traditional card-based systems that involve intermediaries and longer settlement periods, UPI facilitates instant and direct bank-to-bank transactions, 24×7, including holidays. The key innovation lies in interoperability. UPI is not restricted to a particular bank or app. Whether using Google Pay, PhonePe, Paytm, BHIM, or any other UPI-enabled application, users can transfer money across platforms without friction. The Genesis: Why Was UPI Launched? The seeds of UPI were sown in the years following India's push for financial inclusion and digitisation. NPCI, a not-for-profit umbrella body promoted by the Reserve Bank of India and Indian Banks' Association, had already rolled out the IMPS system and RuPay cards. But a need was felt for a more scalable, flexible, and user-friendly payment system that could integrate multiple services into a single interface. The real push came post-2014, as the Digital India mission gained momentum and the Pradhan Mantri Jan Dhan Yojana (PMJDY) brought millions of Indians into the formal banking system. UPI emerged as the ideal next step to connect those bank accounts to a seamless digital payment ecosystem. Former RBI Governor Raghuram Rajan, who was at the helm when UPI was conceptualised, had called it a 'revolution" for retail payments in India. Speaking at an event in 2016, he said, 'The country has the most sophisticated public payment infrastructure in the world, which can be accessible to anyone who enters the system." Pandemic Push And The UPI Boom While UPI was gaining steady traction in its early years, the Covid-19 pandemic acted as a major catalyst. With physical distancing, lockdowns, and a sudden aversion to cash handling, digital payments skyrocketed. UPI saw exponential growth between 2020 and 2022, reaching over 6 billion monthly transactions by late 2022. With zero cost to users, wide availability across urban and rural India, and support in multiple languages, UPI became the go-to for both consumers and small businesses. The government's push to promote QR code-based payments, especially through schemes like PM SVANidhi for street vendors, also brought millions of informal economy participants into the fold. By 2023, UPI had outpaced debit and credit card transactions in both volume and value, according to Reserve Bank of India's Annual Report. The Numbers: UPI's Record-Breaking Growth As of June 2025: UPI powers over 85 per cent of India's digital retail payments, and it is now accepted by over 500 million users. The NPCI's vision of open architecture and standardised APIs (Application Programming Interfaces) has allowed private players like PhonePe and Google Pay to thrive while keeping the underlying system neutral and publicly governed. Why UPI Succeeded Where Others Struggled Interoperability and Open Access The IMF report highlights interoperability as a key driver behind UPI's growth, noting that it 'supports the adoption of digital payments by increasing users' freedom to choose their favourite app" and fosters an ecosystem where 'more providers join and improve, offering better features and security" UPI's meteoric rise was also driven by its zero-cost structure. Since January 2020, the Indian government has enforced a no Merchant Discount Rate (MDR) policy on UPI transactions, meaning merchants are not charged any fees, even for small-value or high-volume payments. The Finance Ministry has repeatedly clarified that there is no plan to impose MDR, calling reports to the contrary 'completely baseless and misleading". With no charges for consumers and no burden on merchants, UPI emerged as the most economical way to transact digitally across income levels and geographies. Its intuitive, multilingual user interfaces further helped it penetrate rural areas, tier-2 and tier-3 towns, and digitally underserved communities. Combined with low data usage, rapid onboarding via Aadhaar-linked bank accounts, and government-supported promotion drives, UPI's frictionless design made it the default payment mode for everything from street vendors to supermarkets. Strong Regulatory Backing Beyond cost advantages and interoperability, UPI's expansion has been actively enabled by targeted government schemes and RBI-led mandates aimed at reaching the informal and underserved segments of the economy. One key intervention was the PM SVANidhi scheme, launched in June 2020, which offers financial incentives to street vendors who adopt digital payments. By linking cashback rewards to UPI transactions, the scheme helped digitise payments in India's vast informal sector. The Reserve Bank of India has also pushed for UPI's integration into feature phones through services like UPI 123Pay, allowing users without smartphones or internet access to make digital transactions using IVR and missed call systems. These innovations have expanded UPI's reach beyond urban centres. Such regulatory and policy measures, focused on inclusion, infrastructure, and behavioural nudges, have ensured UPI's adoption across a wide spectrum of India's population. UPI Goes Global: From Singapore To France UPI's success story isn't confined to India's borders. According to the IMF report, UPI is now live in seven countries: United Arab Emirates Singapore Bhutan Nepal Sri Lanka France Mauritius Its entry into France is particularly notable; it marks UPI's first step into Europe. Tourists and Indian expats can now make payments using Indian bank accounts in outlets accepting UPI, bypassing the need for currency exchange or international cards. The NPCI, via its international arm NPCI International Payments Ltd (NIPL), has been proactively signing agreements with foreign governments and payment gateways. The UAE's Mashreq Bank and Singapore's PayNow are among the first partners. What Lies Ahead for UPI? BRICS Standardisation Drive India is actively advocating for UPI to be recognised as a standard payments platform within BRICS, which recently expanded to include six new member nations. This initiative is part of the broader BRICS Pay agenda aimed at establishing a shared digital payments system. If successful, the move could: Lower costs of remittances across member countries Enable seamless cross-border merchant transactions Elevate India's global fintech influence UPI–e‑Rupee Integration The Reserve Bank of India is integrating UPI with the e‑Rupee (India's retail Central Bank Digital Currency), which began its pilot in December 2022. Currently, users can: Scan UPI QR codes using e‑Rupee wallets for P2P and P2M transactions, settled via the UPI backend Leverage the existing UPI infrastructure to scale e‑Rupee usage—the RBI aims to increase daily CBDC transactions from around 10,000 to 1 million The strategy combines UPI's unparalleled convenience with CBDC's programmability and traceability, potentially creating a sophisticated and inclusive digital money ecosystem. Final Word top videos View all In just nine years, UPI has achieved what many multibillion-dollar payment giants couldn't in decades—creating a unified, inclusive, and globally scalable real-time payments network. With backing from the government, trust from users, and recognition from global institutions, UPI's journey from an Indian innovation to an international benchmark is nothing short of revolutionary. About the Author Karishma Jain Karishma Jain, Chief Sub Editor at writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @ More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : digital banking Financial Inclusion imf Unified Payments Interface view comments Location : New Delhi, India, India First Published: July 21, 2025, 14:33 IST News explainers How India's Homegrown UPI Became The World's Top Real-Time Payments System Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
21-07-2025
- Business
- News18
India's UPI Surpasses Visa To Become World's Top Real-Time Payment System: IMF
Last Updated: India's UPI leads fast payments, handling 640 million daily transactions, surpassing Visa. UPI powers 85% of India's digital payments and 60% globally, now live in seven countries. India's real-time payment technology UPI (Unified Payment Interface) has emerged as the global leader surpassing Visa, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. The IMF report states that UPI has powered 85 per cent of India's digital payments and nearly 60 per cent globally. UPI is handling 640+ million transactions daily, head of Visa, the report stated, adding that Rs 24 lakh crore processed via 18.39 billion UPI transactions in June 2025. The transaction percentage rose 32 per cent YOY compared to the same month last year at 13.88 billion. India's Unified Payments Interface is also now the world's number one real-time payment system, the IMF report said. It has surpassed Visa to take the lead in processing daily transactions. UPI handles more than 640 million transactions every day, compared to Visa's 639 million. This scale is extraordinary, especially when you consider that UPI achieved it in just nine years, it added. UPI is a real-time payment system that enables instant money transfers between bank accounts through a mobile application. It is built on the Immediate Payment Service (IMPS) infrastructure. UPI brings multiple bank accounts into a single app and supports various features such as fund transfers, merchant payments and peer-to-peer payment requests, making digital transactions quick and convenient. UPI's Global Acceptance The IMF report highlighted how UPI technology hasn't remained geographically secluded to India, as several nations have also adopted in recent times. The success story does not stop at home, the IMF report added, 'UPI is making its presence felt across borders. It is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France and Mauritius." Its entry into France is a milestone because it is UPI's first step into Europe. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign transactions, it added. India is also pushing for UPI to become a standard within the BRICS group, which now has six new member nations. If this happens, the IMF report said, it will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments. How Did UPI Revolutionise The Digital Payment? The IMF report explained that UPI connected banks and fintech apps through a common platform managed by NPCI. This openness has two big benefits, it added, 'First, users have the freedom to choose their favourite app, based on trust or ease of use. Second, it creates healthy competition among providers to offer better features and security." Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : UPI view comments Location : New Delhi, India, India First Published: July 21, 2025, 12:04 IST News business » banking-finance India's UPI Surpasses Visa To Become World's Top Real-Time Payment System: IMF Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
20-07-2025
- Business
- Economic Times
India tops global fast payments with UPI processing 18 billion transactions monthly
Getty Images Representative image. India has emerged as the global leader in fast payments, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. At the heart of this transformation is the Unified Payments Interface, better known as UPI. Launched in 2016 by the National Payments Corporation of India, UPI has changed how people send and receive money in the country. It brings all your bank accounts together in one mobile app. One can transfer money instantly, pay merchants, or send funds to friends with just a few taps. Its appeal lies in its speed and ease of use. Today, UPI processes over 18 billion transactions every month in India. "This shift has taken India away from cash and card-based payments and pushed it towards a digital-first economy. Millions of individuals and small businesses now rely on UPI for safe and low-cost transactions. By making payments quick and accessible, UPI has become a powerful tool for financial inclusion," Press Information Bureau (PIB) said in its backgrounders series on Sunday. The scale of UPI today is remarkable. In June alone, it handled over Rs 24.03 lakh crore in payments. This was spread across 18.39 billion transactions. Compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one UPI system now serves 491 million individuals and 65 million merchants. It connects 675 banks on a single platform, allowing people to make payments easily without worrying about which bank they use. Today, UPI accounts for 85 per cent of all digital transactions in India. Its impact goes beyond national borders, powering nearly 50 per cent of global real-time digital payments. "These figures show more than just numbers. They reflect trust, convenience and speed. Every month, more individuals and businesses choose UPI for their payments. This growing use is a strong sign that India is moving steadily towards a cashless economy," the PIB report success story does not stop at home. UPI is making its presence felt across borders. It is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its entry into France is a milestone because it is UPI's first step into Europe. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign to the PIB backgrounder, India is also pushing for UPI to become a standard within the BRICS group, which now has six new member nations. "If this happens, it will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments," it rise as the world's leading real-time payment system was not an accident. It is the result of years of planning and investment in digital infrastructure. Financial inclusion was the first big step. The Jan Dhan scheme opened bank accounts for millions who had never used formal banking before. As of July 9, over 55.83 crore accounts have been created. These accounts give people direct access to government benefits and a safe place to save money.
Time of India
20-07-2025
- Business
- Time of India
India tops global fast payments with UPI processing 18 billion transactions monthly
India has emerged as the global leader in fast payments, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. At the heart of this transformation is the Unified Payments Interface , better known as UPI. Launched in 2016 by the National Payments Corporation of India, UPI has changed how people send and receive money in the country. Explore courses from Top Institutes in Select a Course Category Digital Marketing Management CXO Data Science others Finance Design Thinking Public Policy Degree Technology PGDM MBA Data Science Healthcare Product Management Cybersecurity Leadership Artificial Intelligence Data Analytics MCA Others healthcare Project Management Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details It brings all your bank accounts together in one mobile app. One can transfer money instantly, pay merchants, or send funds to friends with just a few taps. Its appeal lies in its speed and ease of use. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Today, UPI processes over 18 billion transactions every month in India. "This shift has taken India away from cash and card-based payments and pushed it towards a digital-first economy. Millions of individuals and small businesses now rely on UPI for safe and low-cost transactions. By making payments quick and accessible, UPI has become a powerful tool for financial inclusion ," Press Information Bureau (PIB) said in its backgrounders series on Sunday. Live Events The scale of UPI today is remarkable. In June alone, it handled over Rs 24.03 lakh crore in payments. This was spread across 18.39 billion transactions. Compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one year. The UPI system now serves 491 million individuals and 65 million merchants. It connects 675 banks on a single platform, allowing people to make payments easily without worrying about which bank they use. Today, UPI accounts for 85 per cent of all digital transactions in India. Its impact goes beyond national borders, powering nearly 50 per cent of global real-time digital payments . "These figures show more than just numbers. They reflect trust, convenience and speed. Every month, more individuals and businesses choose UPI for their payments. This growing use is a strong sign that India is moving steadily towards a cashless economy," the PIB report read. The success story does not stop at home. UPI is making its presence felt across borders. It is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its entry into France is a milestone because it is UPI's first step into Europe. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign transactions. According to the PIB backgrounder, India is also pushing for UPI to become a standard within the BRICS group, which now has six new member nations. "If this happens, it will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments," it said. UPI's rise as the world's leading real-time payment system was not an accident. It is the result of years of planning and investment in digital infrastructure. Financial inclusion was the first big step. The Jan Dhan scheme opened bank accounts for millions who had never used formal banking before. As of July 9, over 55.83 crore accounts have been created. These accounts give people direct access to government benefits and a safe place to save money.
The Print
14-07-2025
- Business
- The Print
News of the day: 14 July, 2025
US trading giant Jane Street has deposited $567 million in an escrow account to resume trading in India after a Securities and Exchange Board of India (SEBI) ban. Former NITI Aayog CEO Amitabh Kant praised UPI, calling it a 'phenomenal 'achievement on a X post. Earlier, India was positioned as the world leader in real-time payments in an International Monetary Fund Fintech Note, titled 'Growing Retail Digital Payments: The Value of Interoperability'. Unified Payments Interface (UPI), which was developed by the National Payments Corporation of India (NPCI), has officially surpassed Visa to become the world's leading real-time payment system, processing over 650 transactions daily. SEBI accused the firm of market manipulation and put a freeze on $567 million of its funds, with the condition that Jane Street will only be allowed to resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until the SEBI investigation is complete. India & China have 'made good progres s': Jaishankar External Affairs Minister S. Jaishankar Monday told his Chinese counterpart Wang Yi that New Delhi and Beijing had 'made good progress' in the last nine months towards normalisation of bilateral ties. 'It is a result of the resolution of friction along the border and our ability to maintain peace and tranquillity,' Jaishankar said Monday, in his opening remarks during a bilateral discussion with Wang. On a two-day China trip, Jaishankar Monday held bilateral talks with the Chinese leadership in Beijing. He will travel to Tianjin Tuesday to attend the foreign ministers' meeting of the Shanghai Cooperation Organisation. 3 ULFA-I leaders 'killed' in Myanmar, Army denies role Three top leaders of the banned insurgent group, United Liberation Front of Asom-Independent (ULFA-I), were killed in Myanmar, in what the group claims were 'drone attacks' by the Indian Army. Indian Army denies any involvement. According to statements by Paresh Baruah-led outfit, 19 cadres were killed and another 19 injured. Colonel M.S. Rawat, the Defence PRO (Public Relations Officer), in Guwahati said, 'There are no inputs with the Indian Army on such an operation.' 2 yrs after Nuh riots , Internet to be shut down before yatra The Haryana government has ordered the suspension of Internet and SMS services in Nuh district ahead of the Brij Mandal Yatra, scheduled for Monday. District Magistrate Vishram Kumar Meena Sunday issued an order under Section 163 of the Indian Civil Security Code, banning the carrying of all weapons, including licensed arms, firearms, swords, sticks, tridents, rods, knives and chains. Only the sheathed kirpan, worn as a religious symbol by members of the Sikh community, has been exempted. In 2023, Haryana saw communal riots incited during the Brij Mandal Yatra. Axiom 4 mission: Shubhanshu Shukla to return home Astronaut Shubhanshu Shukla and three others of the Axiom 4 mission are setting off for their return journey to Earth Monday, after an 18-day stay at the International Space Station (ISS). Shukla became the second Indian astronaut to travel to space after Rakesh Sharma's 1984 odyssey. Shukla will board the Dragon spacecraft at 2 pm IST and embark on the return journey two hours later. 6 Kerala districts on high alert after 2nd Nipah death In Kerala's Palakkad district, a 57-year-old man who passed away 12 July is suspected to have died after a Nipah virus infection, prompting the government to ramp up contact tracing and field-level surveillance in the area. This is the second Nipah death in the state. Health minister Veena George said in a statemtent that the patient's samples were tested at Manjeri Medical College, and the result came back positive for the Nipah virus. A list of 46 people who came into contact with the man has been drawn up. CCTV footage and mobile tower location data have been used to help identify the people on the list. Friend claims Radhika's murder was premeditated Tennis player Himaanshika Singh Rajput posted a video on her Instagram page Sunday, claiming that the murder of her friend, Radhika Yadav, was premeditated and planned for three days before her father 10 July shot her. 'Her life had become miserable over ten days before the murder. She had completely given up and was ready to live the way they wanted her to live. But her father had lost his mind. He had no expressions on his face. It was evident that he had psychological issues,' she has claimed in the video, a follow-up to her last video, in which she claimed tennis player Radhika 'felt suffocated at home'. 'Sexually harassed' student sets herself on fire A woman undergraduate student in Odisha's Balasore set herself on fire after her sexual harassment complaints against an assistant professor went unaddressed. The student attempted suicide during a protest over the inaction and was rushed to AIIMS, Bhubaneswar, where doctors found she had suffered 90 percent burn injuries. She suffered 90 percent burns after the self-immolation attempt. Assistant Professor Samir Kumar Sahu, who heads the education department at the Fakir Mohan Autonomous College, was later arrested. 'India should avoid rushing into US trade pact' India should avoid rushing into a trade deal with the US that compromises core sectors, such as agriculture, since Washington, D.C., currently is not sparing even key partners, such as the EU, Global Trade Research Initiative (GTRI), an economic think tank, has said. India must recognise it is not alone in facing U.S. pressure since the U.S. is currently negotiating with more than 20 countries and seeking concessions from more than 90, the organisation has added. 'Yet most are resisting because they see these MASALA (Mutually Agreed Settlements Achieved through Leveraged Arm-twisting) deals for what they are—politically driven, transactional demands, offering no lasting trade certainty,' GTRI Founder Ajay Srivastava has said. Saksham Thakur is an intern with ThePrint (Edited by Madhurita Goswami) Also Read: News of the day: 11 July, 2025
