In financial year 2023, there were over 84 billion UPI transactions worth about 139 trillion Indian rupees across India. The number of transactions was estimated to rise up to over 456 billions in financial year 2028 in the country. Unified Payments Interface (UPI) was introduced by National Payments Corporation of India (NPCI) in 2016 and facilitates inter-bank transactions.

In the third quarter of 2024, PhonePe held around 48 percent share of unified payment interfaces (UPI) usage in India, followed by Google Pay with 37 percent. Leading fintech players have been key drivers of UPI adoption in India.  What is UPI? UPI is a real-time payment system that facilitates peer-to-peer inter-bank transfers through a single two-factor authentication process. It has become a popular payment method in India with 84 billion credit transactions in fiscal year 2023. The value of UPI-based digital payments reached 139 trillion Indian rupees in the same fiscal year.  Impact of UPI enabled digital wallets  The integration of digital wallets with the UPI platform has significantly transformed the digital payments landscape in India. This integration allows wallet holders to pay any merchant with a QR code using their wallet balance. It has democratized digital payments by making them more accessible to a larger population, thus bringing more people into the formal banking system. This infrastructure has boosted digital transactions and contributed significantly to financial inclusion in the country.