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7h ago

UPI Extends Lead in India’s Payments as Festive Spending Jumps and Competition Concerns Rise

Fresh reporting underscores small‑ticket merchant usage at scale, with parallel calls to curb reliance on a few third‑party apps.

UPI Payment
With features like UPI Lite, offline payments, voice-enabled transactions, and AI-powered fraud detection, India’s digital stack is no longer playing catch-up—it’s leading.
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Overview

  • RBI’s Payment System Report shows UPI handled about 85% of India’s payment volumes in the first half of 2025, confirming its dominance in low‑value, high‑frequency transactions.
  • Bank of Baroda estimates UPI value reached Rs 17.8 lakh crore during the Dussehra‑to‑Diwali period, with combined UPI, debit and credit transactions totaling roughly Rs 18.8 lakh crore.
  • Worldline reports 106.36 billion UPI transactions worth Rs 143.34 lakh crore in H1 2025, with person‑to‑merchant payments at 67.01 billion and UPI QR acceptance rising to about 678 million.
  • The report highlights next‑wave drivers such as frictionless biometrics, chat‑based payment journeys, recurring payments and cross‑border corridors including Singapore and the UAE.
  • Industry group India Fintech Foundation warned that over 80% of UPI volumes are concentrated with two TPAPs and proposed capping incentive payouts per provider to encourage broader competition.