Digital Transactions FY25 Report: UPI Shows Significant Growth, Accounting for 83.7% of Transactions
India's Unified Payments Interface (UPI) extends its lead in the nation's digital payments sector, accounting for 83.7% of total transaction volume in the fiscal year 2024-25, up from 79.7% in the previous fiscal year. The RBI's annual report reveals that UPI facilitated a staggering 185.8 billion transactions during the said period, marking a 41% year-on-year increase. Valued at Rs 261 lakh crore, UPI transactions surged from Rs 200 lakh crore in the preceding fiscal year.
In global terms, India acquired a 48.5% share in real-time payments by volume due to UPI's success, as stated by the RBI. This milestone underlines India's position as a frontrunner in the real-time payments ecosystem. As digital payments in the country grew 35% to reach 221.9 billion transactions in FY25, with a total value of Rs 2,862 lakh crore, UPI's dominance becomes increasingly evident.
Credit card transactions saw a marginal increase from 3.5 billion to 4.7 billion in FY25, while debit card usage experienced a sharp 29.5% decline, falling to 1.6 billion transactions. The share of digital transactions in total non-cash retail payments remained steady at 99.9% in FY25, compared to 99.8% in FY24.
In an effort to expand UPI's global influence, the RBI has designed a plan to extend the UPI system to 20 countries by 2028-29. Several countries, including Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the United Arab Emirates, have already enabled the acceptance of Indian UPI apps via QR codes. This move allows Indian tourists, students, and business travelers to make payments abroad more effortlessly, further enforcing India's growing influence in the global digital payment landscape.
The RBI's report also highlighted a decline in the total incidence of fraud cases but a tripling of fraud amounts to Rs 36,014 crore, primarily due to the surge in fraud-related advances. Card and internet fraud volume witnessed a significant reduction from 29,802 in FY24 to 13,516 in FY25.
In the global real-time payments sector, India's success with UPI contributes a significant 48.5%, positioning the country as a leader in this arena (technology). This dominance extends beyond India's borders, as the RBI plans to expand UPI to 20 countries by 2028-29, aiming to increase India's influence in the global digital payment landscape (finance).
