India’s Unified Payments Interface (UPI) is gaining momentum and is poised to overtake global giant Visa in daily transaction volumes. This growth marks a significant milestone in the digital payment landscape, positioning UPI as a leading platform globally.
Key Highlights
- UPI’s Current Daily Volume (June 2025): 648 million transactions, surpassing Visa’s FY24 average.
- Visa’s FY24 Annual Volume: 233.8 billion transactions (~640 million/day).
- UPI’s Projected Annual Volume (FY29): 439 billion transactions.
- UPI’s Share in India’s Digital Retail Payments (FY29 forecast): Over 90%.
Driving Factors Behind UPI’s Surge
- Real-time, zero-cost payment model attracting consumers and merchants.
- Increasing smartphone and internet penetration leading to wider rural adoption.
- Integration of merchants at various scales.
- Innovative services like UPI-based credit and offline payments.
- Global expansion through cross-border corridor tie-ups.
Expert Insights
- Kunal Jhunjhunwala (airpay): UPI’s growth signifies a defining moment challenging global incumbents.
- Raj P Narayanam (Zaggle): UPI surpassing Visa annually is inevitable with current trends.
- Akshay Mehrotra (Fibe): UPI represents the future of frictionless digital payments.
- Deepak Chand Thakur (NPST): Growth attributed to innovation, penetration, and infrastructure support.
Background – What is UPI?
- Launched in 2016 by the National Payments Corporation of India (NPCI).
- Enables instant bank-to-bank transfers via mobile platforms.
- Supported by multiple apps like PhonePe, Google Pay, Paytm, etc.
- No cost to users; built on IMPS architecture with 24×7 availability.
Summary/Static Details
- Why in the news: UPI on Track to Surpass Visa in Daily Transactions.
- UPI’s Daily Volume (June 2025): 648–650 million transactions.
- Visa’s Daily Volume (FY24): ~640 million.
- UPI Projected Annual Volume (FY29): 439 billion transactions.
- Current Share in India’s Retail Digital Payments: Over 75%, projected to reach 90%+ by FY29.
Key Takeaways for Competitive Exams
- UPI is set to surpass Visa in daily transaction volumes, showcasing its rapid growth in the digital payment sector.
- Factors driving UPI’s surge include its real-time, zero-cost payment model, wider rural adoption, and innovative services.
- Industry experts predict UPI’s dominance in the digital payment space, marking a significant shift in global finance trends.
- Understanding UPI’s background and functionality is crucial for staying updated on the evolving payment landscape.
