Unified Payments Interface (UPI) QR codes have seen a record-high surge in usage during the financial year 2024-25, posting a whopping 91.5% growth compared to the earlier year and totaling 657.9 million, according to the Reserve Bank of India (RBI) latest numbers.
As UPI infrastructure grew at a record rate, other digital payment modes recorded lower growth. Credit card transactions increased at a modest 7.94% year-on-year growth, and the number of debit cards in circulation increased marginally by 2.7%, reaching 991 million.
This rapid growth in UPI QR codes is due in large part to extensive adoption by large payment players like PhonePe, Paytm, and Google Pay, which have helped spur the rise.
The UPI network also continues to grow with additional banks coming on board. Through April, 668 banks were live on UPI, a figure banking officials believe will further boost the total value of transactions on the platform.
March recorded a new high for UPI with transactions valued at ₹24.77 lakh crore, a 25% year-over-year increase in value and a 36% increase in volume.
UPI has solidly taken root as India's top digital payments channel. The RBI's FY24 annual report shows that close to 80% of total digital payment transactions during FY24 were conducted through UPI.
With regard to its percentage contribution to total digital payment volumes, UPI has continued to grow steadily—up from 73.4% in FY23 to 79.7% in FY24. This is an incredible rise from the days of FY20 when the contribution of UPI was only 36.8%.
The RBI also continues to encourage digital payments through campaigns such as the "Har Payment Digital" campaign that targets enhancing countrywide awareness and motivating all citizens to adopt digital payments.
To further enhance user convenience, the central bank has empowered the National Payments Corporation of India (NPCI) to adjust transaction limits for UPI-based in-person merchant payments as needed, within a secure framework.
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