In a landmark recognition of India’s digital payments ecosystem, the International Monetary Fund (IMF), in its June 2025 report titled “Growing Retail Digital Payments (The Value of Interoperability)”, declared the Unified Payments Interface (UPI) as the world’s largest real-time payment system by transaction volume. This global acknowledgement was further reinforced by ACI World wide’s “Prime Time for Real-Time 2024” report, which revealed that UPI alone accounts for 49% of all real-time payment transactions worldwide. Together, these findings firmly establish India as a global leader in fintech innovation and digital financial infrastructure.
UPI: India’s Real-Time Payments Revolution and Global Dominance
UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI). Introduced in 2016, it allows users to instantly transfer money between bank accounts using mobile phones through UPI IDs or QR codes. Over the years, UPI has transformed everyday financial transactions by enabling seamless interoperability across banks and apps, offering round-the-clock fund transfers, supporting both peer-to-peer and merchant payments, and ensuring zero merchant discount rate (MDR) for users on most platforms.
The scale of UPI’s dominance becomes evident when viewed against global data. According to ACI Worldwide, real-time payment systems worldwide processed 266.2 billion transactions in 2024. India alone contributed 129.3 billion transactions, nearly half of the global total. Brazil followed with 37.4 billion transactions, accounting for 14%, while Thailand recorded 20.4 billion (8%). China processed 17.2 billion transactions, representing 6%, and South Korea logged 9.1 billion transactions, or 3%. All other countries combined contributed 52.8 billion transactions, making up the remaining 20%. These figures highlight how India has surpassed even technologically advanced economies in scaling digital payments.
Policy Push Powering UPI’s Rise and Shaping India’s Global Fintech Leadership
UPI’s rapid growth has been driven by sustained policy support from the Government of India, RBI and NPCI. The Payments Infrastructure Development Fund (PIDF) has played a key role by supporting banks and fintech companies in deploying digital infrastructure such as QR codes and point-of-sale systems in smaller cities and rural areas. As of October 31, 2025, around 5.45 crore digital touchpoints had been created under this scheme. The BHIM-UPI Incentive Scheme has further encouraged low-value transactions, making digital payments accessible to all income groups. Additionally, the expansion of RuPay and UPI integration across utilities, e-commerce and transport services has widened everyday usage. By FY 2024–25, nearly 56.86 crore QR codes had been deployed across 6.5 crore merchants nationwide.
UPI’s success carries significant implications. For India, it reflects the success of the Digital India mission in promoting financial inclusion at scale. Globally, UPI is emerging as a model for low-cost, interoperable payment systems, prompting cross-border integration initiatives with countries such as Singapore, the UAE and France. For small businesses and rural merchants, it offers instant, cashless payments without expensive hardware, while for policymakers, it demonstrates how innovation-friendly regulation can transform financial behaviour across a billion-strong population.
Summary:
India’s UPI has been recognised by the IMF as the world’s largest real-time payment system, accounting for 49% of global transactions. Driven by strong policy support and Digital India initiatives, UPI has transformed payments, boosted financial inclusion, empowered small merchants, and positioned India as a global model for scalable, low-cost fintech infrastructure.
