New innovations such as LiteX (offline payments), tap-and-pay, credit card integration, UPI Autopay, and UPI for IPO subscriptions are pushing the platform from a payment tool to a full-fledged embedded finance ecosystem
Unified Payments Interface (UPI) has crossed a major milestone with over 500 million users and 65 million merchants, establishing itself as more than just a digital payment tool—it has become a daily habit for millions of Indians, according to a new report by the National Payments Corporation of India (NPCI) and Boston Consulting Group (BCG).
Launched at the Global Fintech Fest (GFF) 2025, the report reveals that UPI now accounts for nearly 50 per cent of global real-time payment volumes and 84 per cent of all retail digital transactions in India. It has expanded its reach to 99 per cent of India’s 19,000+ pin codes, significantly contributing to financial inclusion and supporting the growth of micro and small enterprises (MSMEs).
The data shows UPI’s increasing impact on credit access. Between FY23 and FY25, consumer durable loans grew 10 times and personal loans rose 4.4 times in districts with high UPI usage. Two-thirds of users report improved access to financing since adopting UPI, while UPI Autopay transactions have tripled in just one year.
New innovations such as LiteX (offline payments), tap-and-pay, credit card integration, UPI Autopay, and UPI for IPO subscriptions are pushing the platform from a payment tool to a full-fledged embedded finance ecosystem.
“UPI has transformed the way people pay and businesses grow, while earning global recognition as a model for digital public infrastructure,” said Sohini Rajola, Executive Director – Growth, NPCI. She noted its role in empowering women, formalising the MSME sector, and expanding financial access in rural and underserved areas.
As India moves toward its Viksit Bharat 2047 vision, UPI is expected to remain a pillar of the country’s digital economy transformation, driving economic inclusion and enabling a shift from cash to digital.
Vivek Mandhata, Managing Director and Partner at BCG, added, “UPI has changed age-old habits of cash usage and could overtake cash in the coming years, given the strong momentum in both peer-to-peer and peer-to-merchant payments.”
The report also notes that business loans grew 4.2x in high-UPI growth regions since FY23, and 80 per cent of merchants reported higher staff productivity thanks to tools like the UPI Soundbox.
Globally, UPI is now seen as a model for secure, scalable, and inclusive digital payments, with several countries exploring ways to replicate India’s public digital infrastructure success story.
