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UPI Captures 81% of India's Digital Payments, Hits Record High in FY25

Finance Minister Nirmala Sitharaman stated that the Unified Payments Interface (UPI) dominated India's retail digital payments with an 81% share in FY25, cementing its position as the world's largest real-time retail payment system. The total volume of these transactions surged from 7,176.9 crore in FY22 to 22,167.9 crore in FY25, while their value nearly doubled to Rs 849.12 lakh crore. This exponential growth is attributed to coordinated efforts by the government, RBI, and NPCI, alongside factors like smartphone penetration and Aadhaar authentication. However, the minister also highlighted accompanying challenges, including cybersecurity risks and digital adoption gaps, which are being addressed through new safeguards and public awareness campaigns.

Key Points: UPI Dominates 81% of India's Retail Digital Payments in FY25

  • UPI is world's largest real-time retail payment system
  • Digital payment volume tripled from FY22 to FY25
  • Growth driven by smartphone & Aadhaar adoption
  • Government cites cybersecurity as key challenge
  • RBI & banks run anti-fraud awareness campaigns
2 min read

UPI dominated retail digital payments with 81 pc share in FY25: Govt

Finance Minister Nirmala Sitharaman reveals UPI's 81% share in retail digital payments, with transaction value soaring to Rs 849 lakh crore in FY25.

"UPI accounted for around 81 per cent of total retail digital payment transactions in FY25 - Nirmala Sitharaman"

New Delhi, March 16

Finance Minister Nirmala Sitharaman on Monday said that the Unified Payments Interface accounted for around 81 per cent of total retail digital payment transactions in FY25 and has emerged as the largest real-time retail payment system in the world.

In a written reply to separate questions in the Lok Sabha, Sitharaman said the total volume of retail digital payment transactions increased from 7,176.9 crore in FY22 to 22,167.9 crore in FY25.

Retail digital payment transactions in India have witnessed exponential growth in recent years due to coordinated efforts by the government, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI).

"In value terms, digital payment transactions rose from Rs 457.44 lakh crore in FY22 to Rs 849.12 lakh crore in FY25," she said.

According to the minister, the growth trajectory suggests that the volume of digital payments rose by 58.42 per cent in FY23, followed by 44.39 per cent in FY24 and 35.04 per cent in FY25.

In terms of value, transactions grew by 28.41 per cent in FY23, 22.47 per cent in FY24 and 18.04 per cent in FY25.

"The growth in retail digital payments, including UPI, is driven by several factors such as smartphone penetration, Aadhaar-enabled authentication, e-KYC, wider financial inclusion and expansion of merchant acceptance infrastructure across both urban and rural areas," Sitharaman said.

Meanwhile, she also expressed concern that the rise in digital payments has brought certain challenges, including cybersecurity risks, digital adoption gaps, literacy and awareness issues, and network-related constraints.

To tackle digital financial frauds, several safeguards have been introduced by the government, RBI and NPCI.

In addition, awareness campaigns are regularly conducted by the RBI and banks through SMS alerts, radio campaigns and other outreach initiatives to prevent cyber fraud, she said

- IANS

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Reader Comments

R
Rohit P
The growth numbers are staggering! 22,167 crore transactions in FY25 is mind-boggling. But the government must focus more on cybersecurity. My uncle lost money in a UPI fraud last month. Awareness campaigns are good, but stronger safeguards are needed.
A
Aman W
Jio's cheap data and UPI came together to change everything. Even my dadi in the village now pays for groceries with her phone. The real success is financial inclusion in rural areas. 👏
S
Sarah B
Visiting India from the US last year, I was amazed. The UPI system is far ahead of what we have. Paying anyone instantly with just a QR code or phone number is brilliant. The world should learn from India's digital payment model.
K
Karthik V
While the achievement is phenomenal, we must not ignore the 'digital adoption gaps' mentioned. Many senior citizens and small traders in my locality still struggle. The push should be on simplifying the interface and providing better offline support.
N
Nisha Z
Cashless economy is becoming a reality. No more running to ATMs or worrying about change. But network issues in remote areas are a real problem. Hope 5G rollout helps fix that.

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