In financial year 2023, over *** billion digital transactions worth over *** trillion Indian rupees of transactions across India. The number of transaction was estimated to rise up to over *** billion in financial year 2027 in the country.

In financial year 2024, almost *** billion digital payments were recorded across India. This was a significant increase compared to the previous three years.  Variety of digital payments  The total value of digital payments included large-scale interbank payments, such as Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT), as well as payments used by individuals, such as credit and debit cards. India’s mobile payment system, Unified Payments Interface (UPI), recorded strong gains, both in numbers and in value, since 2015. Thereby, it comes as no surprise that international key players, such as Google Pay or Amazon Pay, entered the market. Nevertheless, the most used app in 2021 was domestic app PhonePe.  COVID-19 effects  Since the beginning of the COVID-19 pandemic in India, the number of digital payment transactions continued to grow. This was also true for the various methods of credit and debit transfers, including mobile payments through UPI. Nevertheless, the value of card payments and of large value credit transfers, such as RTGS, decreased considerably in financial year 2021.

In financial year 2024, about *** billion digital transactions worth *** trillion Indian rupees of transactions took place across India. The transaction value was estimated to rise up to *** trillion Indian rupees in financial year 2029 in the country.

As of March 2025, the Bharat Interface for Money (BHIM) Unified Payments Interface (UPI) was the most used mode of digital payments in India, with a transaction volume of around *** billion transactions. National Automated Clearing House (NACH) followed with around ** billion transactions. The majority of the transactions across sectors such as online retail, food delivery, mobility, and e-health were made by UPI in the financial year 2023. What is BHIM UPI? BHIM is a mobile payment app developed by the National Payments Corporation of India (NPCI) based on UPI. It was launched in 2016, and it facilitates electronic payments directly through banks and promotes cashless payments. It allows users to send or receive payments using only a mobile number or UPI ID. As of June 2023, more than *** Indian banks had partnered with BHIM. Payment methods: a decade of transformation    The last decade has witnessed a significant transformation in the payments landscape in India. In the early decade, methods such as cash and cheques were prevalent. However, with the advent of smartphones and internet connectivity, digital payment methods started gaining traction. The government’s ‘Digital India’ campaign further propelled this shift, aiming to create a ‘digitally empowered’ economy that is 'Faceless, Paperless, Cashless’. Several digital payment methods emerged in this decade. Credit cards and debit cards became widely popular due to their convenience, portability, and security features. The introduction of UPI served as a game changer in the payments industry by facilitating instant money transfers between any two bank accounts via a mobile platform.

The "Digital Payments 2025 Dataset" is a synthetic dataset representing digital payment transactions across various payment applications in India for the year 2025. It captures monthly transaction data for multiple payment apps, including banks, UPI platforms, and mobile payment services, reflecting the growing adoption of digital payments in India. The dataset was created as part of a college project to simulate realistic transaction patterns for research, education, and analysis in data science, economics, and fintech studies. It includes metrics such as customer transaction counts and values, total transaction counts and values, and temporal data (month and year). The data is synthetic, generated using Python libraries to mimic real-world digital payment trends, and is suitable for academic research, teaching, and exploratory data analysis.

High Frequency Indicator: The dataset contains year-, month-, state- and district-wise compiled data on the volume of transactions which have been done through National Financial Switch (NFS) System

Notes:

1. NFS (National Financial Switch) is a financial service which has a ATM network of 37 members and connects about 50,000 ATMs. It primary enables cardholders of participating member banks to use NFS networked Cash Recyclers/Cash Deposit Machines to deposit cash in their own account or third party account through its services such as UPI-ATM Cash Withdrawal, Interoperable Cash Deposit (ICD), etc. Apart from this, the other financial and non-financial services that NFS enables through its network are Mobile Banking Registration (MBR), Card-to-Card Fund Transfer (C2C), Cheque Book Request (CBR), Statement Request (SR), Aadhar Number Seeding (ANS), etc. These services are available for customers of participating member’s banks on participating members ATMs.

2. NFS is taken over by National Payments Corporation of India (NPCI) from Institute for Development and Research in Banking Technology (IDRBT) on December 14, 2009

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Digital Payment Market Size 2025-2029

The digital payment market size is valued to increase USD 304.95 billion, at a CAGR of 25.5% from 2024 to 2029. Rising number of online transactions will drive the digital payment market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 35% growth during the forecast period.
By End-user - Large enterprises segment was valued at USD 28.10 billion in 2023
By Component - Solutions segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 735.94 billion
Market Future Opportunities: USD 304952.40 billion
CAGR from 2024 to 2029 : 25.5%

Market Summary

The market is a dynamic and ever-evolving landscape shaped by advancements in core technologies and applications. With the rising number of online transactions, the market is witnessing a growing emergence of mobile apps for shopping transactions, now accounting for over 50% of all e-commerce sales. However, this shift towards digital payments also brings challenges, including privacy and concerns related to security. As of 2021, contactless payments are expected to represent approximately 25% of all digital transactions, underscoring the market's continuous evolution. Regulations, such as the European Union's Strong Customer Authentication (SCA) and PSD2, further influence the market, ensuring secure and compliant transactions. Staying updated on these trends and regulations is crucial for businesses aiming to capitalize on the opportunities presented by the market.

What will be the Size of the Digital Payment Market during the forecast period?

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How is the Digital Payment Market Segmented ?

The digital payment industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userLarge enterprisesSMEsComponentSolutionsServicesDeploymentOn-premisesCloudMethodDigital walletsBank cardsDigital currenciesApplicationBFSIMedia and entertainmentIT and telecommunicationHospitalityHealthcareGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKAPACChinaIndiaJapanSouth KoreaSouth AmericaBrazilRest of World (ROW)

By End-user Insights

The large enterprises segment is estimated to witness significant growth during the forecast period.

In today's business landscape, digital payment adoption has witnessed significant growth, particularly among large enterprises in sectors such as banking, securities, finance and insurance (BSFI), information technology, and manufacturing. This trend is driven by the increasing number of transactions and the expansion of BSFI enterprises, as well as the rise of intraregional and cross-border banking activities. Contactless and card-based payments have become the norm in various industries, including modern vending machines, hotels, restaurants, grocery stores, shopping malls, and event management companies. Real-time payment systems, secure data transmission, and regulatory compliance are essential components of these digital payment solutions. Tokenization security, customer onboarding processes, and chargeback management are critical elements ensuring the success of digital payment transactions. Data encryption methods, payment reconciliation, and payment processing fees are also essential considerations. Payment gateway integration, transaction success rates, and payment authorization protocols are key factors in providing seamless and efficient payment processing. Customer support channels, fraud prevention measures, and biometric authentication are essential for maintaining customer trust and satisfaction. Settlement cycle times, two-factor authentication, and mobile payment adoption are ongoing trends in the market. Recurring billing systems, e-commerce payment processing, and dispute resolution processes are crucial for businesses in various industries. API integration services, risk management strategies, payment gateway security, and cryptocurrency integration are essential features for digital payment providers. Merchant acquiring services, omnichannel payment solutions, PCI DSS compliance, and financial transaction security are also crucial elements in the digital payment ecosystem. The market is expected to grow substantially, with a reported 30% of businesses worldwide adopting digital payments in 2021. Furthermore, industry experts predict that the market will reach a value of 7.5 trillion USD by 2026. These trends reflect the continuous evolution of digital payment technologies and their increasing importance in the business world.

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The Large enterprises segment was valued at USD 28.10 billion in 2019 and showed a gradual increase during t

The online banking penetration rate in India was forecast to continuously increase between 2024 and 2029 by in total 19.3 percentage points. After the fifteenth consecutive increasing year, the online banking penetration is estimated to reach 64.34 percent and therefore a new peak in 2029. Notably, the online banking penetration rate of was continuously increasing over the past years.Shown is the estimated percentage of the total population in a given region or country, which makes use of online banking.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the online banking penetration rate in countries like Pakistan and Bangladesh.

This Dataset contains day-wise transaction data of Aadhaar Enabled Payment System (AEPS) - BHIM Aadhaar Pay, AePS - Cash Withdrawal, AePS - Funds Transfer, Bharat Bill Payment System (BBPS), Cheque Truncation System (CTS), Immediate Payment Service (IMPS), NACH - APBS, NACH - Credit, NACH - Debit, NETC, National Financial Switch, Unified Payments Interface (UPI)

India Payment Systems: Volume: Payment Transactions: RBI Operated: National Electronic Funds Transfer (NEFT) data was reported at 9.964 Unit mn in 28 Aug 2020. This records an increase from the previous number of 7.846 Unit mn for 27 Aug 2020. India Payment Systems: Volume: Payment Transactions: RBI Operated: National Electronic Funds Transfer (NEFT) data is updated daily, averaging 8.426 Unit mn from Jun 2020 (Median) to 28 Aug 2020, with 89 observations. The data reached an all-time high of 17.300 Unit mn in 01 Jul 2020 and a record low of 0.606 Unit mn in 21 Jun 2020. India Payment Systems: Volume: Payment Transactions: RBI Operated: National Electronic Funds Transfer (NEFT) data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI001: Payment Systems: Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) Operated: Daily.

The Unified Payments Interface (UPI) is a groundbreaking system that integrates multiple bank accounts into a single mobile application, enabling users to manage diverse banking functionalities, conduct peer-to-peer transactions, and process merchant payments seamlessly. Launched by the National Payments Corporation of India (NPCI), UPI aims to streamline digital transactions, enhance security, and offer unparalleled convenience to users. The system was piloted with 21 member banks on April 11, 2016, and launched by Dr. Raghuram G. Rajan, then Governor of the Reserve Bank of India (RBI). By August 2016, banks began uploading UPI-enabled apps to the Google Play Store, marking a significant milestone in India’s journey toward a cashless economy.

The population share with mobile internet access in India was forecast to continuously increase between 2024 and 2029 by in total 25 percentage points. After the fifteenth consecutive increasing year, the mobile internet penetration is estimated to reach 73.62 percent and therefore a new peak in 2029. Notably, the population share with mobile internet access of was continuously increasing over the past years.The penetration rate refers to the share of the total population having access to the internet via a mobile broadband connection.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the population share with mobile internet access in countries like Bangladesh and Sri Lanka.

Introduction

UPI Statistics: Unified Payments Interface (UPI) is a digital payment system that will still dominate the space in 2024 and beyond. UPI is a real-time payment system designed by the National Payments Corporation of India (NPCI), which facilitates instantaneous fund transfer between two bank accounts using mobile devices.

It has gained acceptance owing to its quickness, safety and ease of access. UPI has been and will be effective in India. Its numbers, trends, and projections are represented by figures and plain words. Let’s go on and analyze the present UPI Statistics and the vivid possibilities associated with UPI.

India Payment Systems: Volume: Payment Transactions: NPCI Operated: Unified Payments Interface (UPI) data was reported at 54.931 Unit mn in 28 Aug 2020. This records an increase from the previous number of 54.474 Unit mn for 27 Aug 2020. India Payment Systems: Volume: Payment Transactions: NPCI Operated: Unified Payments Interface (UPI) data is updated daily, averaging 47.981 Unit mn from Jun 2020 (Median) to 28 Aug 2020, with 89 observations. The data reached an all-time high of 57.827 Unit mn in 11 Aug 2020 and a record low of 28.900 Unit mn in 13 Jun 2020. India Payment Systems: Volume: Payment Transactions: NPCI Operated: Unified Payments Interface (UPI) data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI001: Payment Systems: Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) Operated: Daily.

During the fourth quarter of 2018, the number of digital transactions in India accounted for approximately *** billion. The year 2018 saw a significant increase in online payments as compared to the previous year. The reason for this growth could be attributed to proactive measures taken by the government and the rising fintech startups, aspiring to transition to a cashless economy.

India Mobile Banking Transactions: Value data was reported at 37,696,017.240 INR mn in Mar 2025. This records an increase from the previous number of 32,155,172.112 INR mn for Feb 2025. India Mobile Banking Transactions: Value data is updated monthly, averaging 1,798,543.365 INR mn from Apr 2011 (Median) to Mar 2025, with 168 observations. The data reached an all-time high of 37,696,017.240 INR mn in Mar 2025 and a record low of 760.000 INR mn in Apr 2011. India Mobile Banking Transactions: Value data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI017: Mobile Payments. [COVID-19-IMPACT]

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India Unified Payments Interface Market Size 2025-2029

The India unified payments interface (UPI) market size is forecast to increase by USD 4317.82 billion, at a CAGR of 271.9% between 2024 and 2029.

The Unified Payments Interface (UPI) market is experiencing significant growth, driven by the instant and smooth money transfer process it offers. This real-time payment system has gained immense popularity, particularly in the context of growing mobile commerce. UPI's integration with various mobile apps has facilitated seamless shopping transactions, enhancing customer convenience. However, this market is not without challenges. UPI payment frauds pose a significant threat, with increasing reports of unauthorized transactions. As the market evolves, it is crucial for stakeholders to address these challenges effectively to maintain trust and ensure secure transactions.
Companies can capitalize on the market's momentum by focusing on robust security measures and user education. By navigating these challenges and leveraging the convenience and efficiency of UPI, businesses can effectively cater to the evolving needs of digital consumers. Open banking and payment gateways enable seamless payment routing, while data analytics and big data harness the power of AI and machine learning.

What will be the size of the India Unified Payments Interface (UPI) Market during the forecast period?

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In the dynamic UPI market, multi-factor authentication (MFA) and personalized experiences are key trends shaping the landscape. Payment processors leverage MFA to secure transactions, while digital wallets offer customized user experiences. Payment optimization and financial literacy programs are crucial for customer segmentation and inclusion initiatives. Instant payment and mobile money facilitate real-time settlement, driving the adoption of mobile Point of Sale (mPOS) systems.
Payment tokenization and biometric authentication ensure data encryption and security. Payment card networks and cloud computing further enhance the ecosystem's flexibility and scalability. Two-factor authentication (2FA) and real-time settlement are essential components of the UPI market's growth, fostering trust and efficiency. Blockchain technology and payment orchestration are emerging innovations, promising to revolutionize the industry.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Money transfers
  Bill payments
  Point of sale
  Others


Type

  P2P
  P2M


Technology

  UPI 1.0
  UPI 2.0
  UPI lite
  UPI for feature phones
  Cross-border UPI


Geography

  APAC

    India

By Application Insights

The money transfers segment is estimated to witness significant growth during the forecast period.

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The Money transfers segment was valued at USD 365.30 million in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Unified Payments Interface (UPI) in India Industry?

The instant and seamless money transfer process serves as a primary catalyst for market growth. By ensuring quick and efficient transactions, it attracts an increasing number of users and fuels the expansion of the financial sector. The Unified Payments Interface (UPI) is a digital payment system based on the Implied Money Transfer System (IMPS) platform, enabling instant money transfers between any two bank accounts in India. UPI offers uninterrupted services 24x7, allowing users to make payments at any time and from anywhere, irrespective of holidays or odd hours. This payment system's security is ensured through multiple layers of authentication, making it a reliable choice for bill payments, online shopping, and peer-to-peer transactions.



Financial innovation has been a significant driver for the growth of UPI, enabling instant fund transfers and eliminating the need for physical checks or cash transactions. Merchant onboarding is a seamless process, and UPI integrates easily with digital banking applications and payment gateways. Transaction fees are minimal, making it an economical option for businesses and individuals. Overall, UPI's fast, secure, and convenient payment processing system has revolutionized digital payments in India.

What are the market trends shaping the Unified Payments Interface (UPI) in India Industry?

The i

Bharat Interface for Money (BHIM) is a simple, secure, and reliable mobile payment application that facilitates seamless and instant transactions between bank accounts using the Unified Payments Interface (UPI). Launched by the National Payments Corporation of India (NPCI) in December 2016, BHIM has become a cornerstone of India’s digital payment ecosystem, offering individuals an efficient way to send and receive money without physical banking. Designed to promote financial inclusion and drive India towards a cashless economy, the app enables users to make bank-to-bank payments with just a few clicks using a mobile number or Virtual Payment Address (VPA), also known as UPI ID.

Reserve Bank of India has been working towards the goal of financial inclusion for almost two decades. Several policy initiatives have been implemented to provide formal financial services to the unbanked people of India both by the Government of India and Reserve Bank of India. However, most of these measures primarily focus on the supply side of the problem. For that reason, even if some successes have been witnessed, there remains a huge mass of Indian adults still excluded from formal financial system. Recently, the direction has been shifted to “digital financial inclusion” as it has been realized that remarkable advancement in technology and internet penetration can be leveraged upon to achieve the goal of financial inclusion in India. In this paper, the notion of “digital financial inclusion”, its scope and challenges have been analysed. The policy measures taken in India towards the objective of digital financial inclusion have also been briefly discussed. The agenda of digital financial inclusion has been discussed with a special reference of the the demand side. Hence, it is suggested that, in the coming years, to accelerate financial inclusion in India through digital mode, policy makers should emphasize on the demand side factors like spreading digital financial literacy and enhancement of customer protection from cyber threats during online financial transactions.

India Payment Systems: Value: Payment Transactions: NPCI Operated: National Electronic Toll Collection (NETC) data was reported at 629.300 INR mn in 28 Aug 2020. This records an increase from the previous number of 621.100 INR mn for 27 Aug 2020. India Payment Systems: Value: Payment Transactions: NPCI Operated: National Electronic Toll Collection (NETC) data is updated daily, averaging 528.042 INR mn from Jun 2020 (Median) to 28 Aug 2020, with 89 observations. The data reached an all-time high of 629.300 INR mn in 28 Aug 2020 and a record low of 443.674 INR mn in 01 Jun 2020. India Payment Systems: Value: Payment Transactions: NPCI Operated: National Electronic Toll Collection (NETC) data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI001: Payment Systems: Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) Operated: Daily.