India has succeeded in becoming a global leader in fast payments, as highlighted in a recent note by the International Monetary Fund titled "Growing Retail Digital Payments: The Value of Interoperability."
The Unified Payments Interface is at the heart of all transformation. The National Payments Corporation of India launched it in 2016. UPI has completely transformed the nature of transactions in the country.
One mobile app holds all the bank accounts. One can transfer money instantly, pay merchants, or send funds to friends with just a few taps. The speed and ease of use are appealing to people.
Every month, in India, UPI processes over 18 billion transactions. On Sunday, the Press Information Bureau said in its background series that the shift has taken India away from cash and card-based payments and pushed it towards a digital-first economy. For safe and low-cost transactions, millions of individuals and small businesses now rely on UPI. UPI has become a powerful tool for financial inclusion, said the Press Information Bureau.
"These figures show more than just numbers. They reflect trust, convenience and speed. Every month, more individuals and businesses choose UPI for their payments. This growing use is a strong sign that India is moving steadily towards a cashless economy," the PIB report read.
In June alone, it handled over Rs 24.03 lakh crore in payments. This was spread across 18.39 billion transactions. Compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one year.
The UPI system connects 675 banks on a single platform. It serves 491 million individuals and 65 million merchants. It allows people to make payments. Today, UPI accounts for 85 per cent of all digital transactions in India. It is responsible for 50 per cent of global real-time digital payments. Its impact goes beyond national borders.
