Mumbai — Unified Payments Interface (UPI) has reached a major milestone with over 500 million consumers and 65 million merchants, evolving from a digital payment platform into an essential part of daily life. According to a report released on Wednesday, UPI is now driving financial inclusion, expanding access to credit, and fuelling growth for micro and small enterprises across India.
The report, unveiled at the Global Fintech Fest (GFF) 2025 by the National Payments Corporation of India (NPCI) and the Boston Consulting Group (BCG), highlights UPI’s dominance—accounting for nearly 50 per cent of global real-time payment volumes and 84 per cent of all retail digital payments in India.
Now active across 99 per cent of India’s 19,000+ pin codes, UPI has become a key force in accelerating nationwide economic activity.
Between FY23 and FY25, consumer durable loans grew tenfold and personal loans increased 4.4 times in high-UPI growth districts. UPI Autopay transactions have also tripled over the past year, while two out of three users report improved access to financing since adopting the platform.
With innovations such as LiteX (offline payments), tap-and-pay, UPI for IPO subscriptions, Credit Card on UPI, and UPI Autopay, the system is moving from embedded payments to embedded finance, unlocking new opportunities for digital lending, insurance, and investment.
“UPI has transformed the way people pay and businesses grow, while earning global recognition as a model for digital public infrastructure,” said Sohini Rajola, ED – Growth, NPCI. “Beyond convenience, UPI is formalising micro and small enterprises, empowering women, and expanding credit access in high-adoption regions.”
As India progresses toward its Viksit Bharat 2047 vision, UPI remains central to the nation’s digital transformation—strengthening financial infrastructure, empowering MSMEs, and driving a shift toward a cashless economy.
“UPI has changed age-old cash habits and could soon overtake cash altogether, with strong momentum across peer-to-peer (P2P) and peer-to-merchant (P2M) transactions,” noted Vivek Mandhata, Managing Director and Partner, BCG.
The report also underscores UPI’s transformative impact on India’s merchant ecosystem. Business loans grew 4.2 times in high-UPI growth districts compared to low-growth regions since FY23, while eight in ten merchants reported improved staff productivity thanks to digital tools like the UPI Soundbox.
Beyond India, UPI is now setting a global standard for secure, interoperable, and scalable digital payments, inspiring several countries to replicate India’s model of inclusive digital public infrastructure.
With inputs from IANS