UPI has witnessed an unprecedented surge in its transaction volume, reaching a remarkable milestone of 900 crore transactions in the month of May this year. This achievement highlights the growing popularity and widespread adoption of UPI as a preferred digital payment method in India.
According to reports, UPI transactions are projected to reach an astonishing 1 billion per day by the fiscal year 2026-2027. This indicates that UPI will account for approximately 90 percent of the retail digital payments in the country. The report further emphasises the significant role of UPI in transforming the digital payments landscape in India.
Furthermore, the report estimates that UPI transactions will continue to witness exponential growth, reaching 379 billion transactions by the fiscal year 2026-2027, compared to 83.71 billion transactions recorded in the year 2022-2023. This projection underscores the tremendous potential of UPI as a driving force behind India’s digital payment revolution.
The rapid growth of UPI can be attributed to its seamless and user-friendly interface, which enables users to make instant and secure transactions using their smart phones. The convenience and efficiency offered by UPI have resonated with users across various segments, leading to its widespread adoption.
UPI was introduced in the country in 2016 with the aim of facilitating digital payments without the hassle of complications and restrictions. It was presented as a contemporary payment system that enables smooth and convenient digital transactions.
Since its inception, UPI has gained widespread acceptance and adoption across several countries, including Bhutan, Malaysia, the United Arab Emirates, Nepal, France, the United Kingdom, Russia, Oman, Qatar, Australia, Thailand, Saudi Arabia, Singapore, Malaysia, Thailand, Vietnam, Cambodia, South Korea, and Bahrain. Recently, Japan also came forward with the intention of adopting UPI.