Daijiworld Media Network - Mumbai

Mumbai, Oct 8: Unified Payments Interface (UPI) has rapidly evolved from a digital payment tool into a powerful engine of economic growth, financial inclusion, and credit access across India, according to a new report launched at the Global Fintech Fest (GFF) 2025.

The study, released jointly by the National Payments Corporation of India (NPCI) and the Boston Consulting Group (BCG), showcases UPI’s meteoric rise and its growing global influence. With over 500 million consumers and 65 million merchants onboard, UPI now accounts for nearly 50% of global real-time payment volumes and 84% of all retail digital payments within India.

The platform’s reach is unmatched, now covering 99% of India’s 19,000+ pin codes, making it an essential part of everyday life for both consumers and businesses. The report underscores how UPI is driving the formalisation of micro and small enterprises, expanding credit access, and financially empowering underserved communities.

Between FY23 and FY25, high-UPI adoption districts saw:

• 10x growth in consumer durable loans,
• 4.4x rise in personal loans,
• 4.2x increase in business loans.

Additionally, UPI Autopay transactions have tripled in the past year, and two-thirds of users reported improved access to credit since they began using UPI.

UPI’s expanding feature set—including UPI Autopay, Credit Card on UPI, LiteX (offline payments), tap-and-pay, and even UPI for IPO subscriptions—signals a shift from basic digital payments to embedded finance, enabling richer financial services directly within digital ecosystems.

"UPI has transformed how people pay and how businesses grow," said Sohini Rajola, Executive Director – Growth, NPCI. "It’s not just about convenience—it’s about financial empowerment, particularly for women, micro-enterprises, and underserved regions."

The report also highlights strong feedback from merchants:

• 80% report increased staff productivity, aided by tools like the UPI Soundbox,
• Merchants in high-UPI districts report faster access to credit and improved formalisation.

Vivek Mandhata, Managing Director and Partner at BCG, emphasized UPI’s behavioral impact: "It has changed age-old habits of cash usage and may soon surpass cash in volume, driven by robust P2P and P2M transaction growth."

Internationally, UPI is drawing attention as a blueprint for secure, scalable, and interoperable digital public infrastructure. Countries across Asia, Africa, and the Middle East are reportedly studying India's UPI model to replicate its success.

As India moves toward its Viksit Bharat 2047 vision, UPI is expected to play a central role in deepening financial inclusion, boosting MSME growth, and accelerating the country’s transition to a digitally driven economy.