According to a recent report by the International Monetary Fund (IMF), India has emerged as a world leader in the instant payments sector. In June 2023, transactions worth Rs 24.03 lakh crore were done through 18.39 billion transactions through the Unified Payments Interface (UPI), which is 32 percent more than the previous year.
Currently, UPI accounts for 85% of all digital transactions in India, while globally it accounts for 50% of all real-time digital payments. UPI handles over 640 million transactions per day, which is more than the daily capacity (639 million) of global leading payment platforms like Visa.
UPI has achieved this remarkable success in just nine years. Currently, the platform integrates 491 million users, 65 million merchants and 675 banks. It has provided easy access to digital financial services to rural and small town residents by promoting financial inclusion.
The IMF believes that India’s success is the result of long-term digital infrastructure investment and strategic use of technology for inclusive growth.
UPI’s influence is also expanding internationally. It is already operational in the United Arab Emirates, Singapore, Bhutan, Nepal, Sri Lanka, France and Mauritius. Its launch in France marks its entry into the European market.
India is also lobbying for the adoption of UPI as a payment standard in the BRICS grouping. If approved, it will make international payments more efficient, affordable and secure, further strengthening India’s position as a global digital leader.