In May 2025, India’s Unified Payments Interface (UPI) reached a groundbreaking milestone, surpassing Visa with over 65 crore daily transactions. This rapid growth makes UPI the fastest-growing payment system, processing a whopping Rs25 lakh crore—12 times more than all card payments combined in India. Today, UPI facilitates 85% of the nation’s digital payments, contributing to India’s impressive global share of 48.5% in digital transactions.
What is UPI?
UPI, launched by the National Payments Corporation of India (NPCI) on April 11, 2016, is a real-time payment system that allows instant fund transfers between bank accounts. It simplifies transactions by using a unique UPI ID or QR code, eliminating the need for extensive bank details. Available 24/7, UPI not only enables money transfers but also allows users to pay bills and check balances through a single app.
UPI’s Global Reach
UPI’s impact is now felt beyond India. On July 5, 2025, Trinidad and Tobago became the first Caribbean nation to adopt UPI, enhancing digital cooperation between the two countries. This adoption reflects a growing global trend, as countries increasingly recognize the potential of digital payment systems.
Key Milestones in UPI’s Journey
- 2016: UPI was launched with 21 banks, quickly gaining traction. By December 2016, monthly transactions rose from 93,000 to nearly 2 million.
- 2017: UPI saw explosive growth, flaring up from 4.2 million transactions at the start of the year to 145.5 million by December.
- 2018: UPI crossed the 400 million monthly transaction mark in October, concluding the year with 3 billion transactions.
- 2019: It soared to 10.78 billion transactions for the entire year, showing a 191% increase in volume compared to the previous year.
- 2020: UPI reached Rs4 trillion in monthly transactions, affirming India’s status as a leader in global digital payments with 25.5 billion transactions that year.
- 2021-2022: Growth continued, with UPI closing 2021 at Rs8.26 lakh crore in December alone and 2022 seeing over 74 billion transactions worth Rs125.94 lakh crore.
- 2023: Monthly payments hit 100 billion transactions, culminating in around Rs182 lakh crore in total value.
- 2024: The system recorded 172 billion transactions worth Rs247 lakh crore, with daily transactions averaging 540 million.
- 2025: UPI officially surpassed Visa in daily transaction volume, becoming a global frontrunner.
Expert Insights
According to a report from the International Monetary Fund (IMF) in July 2025, UPI’s growth is reshaping the global payments landscape. The report highlights UPI’s interoperability and recommends that policymakers maintain an open and competitive environment, which is essential to encourage innovation.
Impact on Cash Usage
As UPI continues to flourish, cash transactions are decreasing, supported by a steady fall in ATM withdrawals. The IMF notes this shift to digital payments is transforming economies and enhancing financial inclusion.
Future Outlook
UPI is poised to further expand internationally. Already in countries like Bhutan, Nepal, the UAE, and now Trinidad and Tobago, the system is paving the way for seamless cross-border transactions. It is a vital part of India’s strategy to enhance economic ties globally.
By blending innovation with international collaboration, UPI is shaping the future of digital payments not just in India, but across the world. Its journey from a national tool to a global phenomenon emphasizes the significant role of digital payment systems in today’s economy.
