The United Payments Interface (UPI) has emerged as the dominant force in India’s digital payment ecosystem, accounting for 83% of the total payment volume by the end of 2024, according to the Reserve Bank of India’s (RBI) Payments System Report. This marks a significant surge from just 34% in 2019. In contrast, the share of other payment methods, including RTGS, NEFT, IMPS, credit cards, and debit cards, has declined from 66% to a mere 17% over the same period.
RBI data highlights that in 2018, India’s total digital transaction volume was 2,057 crore, with UPI contributing 375 crore transactions. By the close of 2024, UPI’s transaction volume had soared to 17,221 crore, driving the country’s total payment volume to 20,787 crore. The value of these transactions surged from Rs 5.86 lakh crore in 2018 to an astounding Rs 246.83 lakh crore in 2024, reflecting an impressive compounded annual growth rate (CAGR) of 89.3% in volume and 86.5% in value over the last five years.
The RBI’s report attributes UPI as the key driver behind India’s digital payments boom, noting a CAGR of 74% in UPI’s growth over the five years. India’s overall payment system has also expanded rapidly, with total payments rising from Rs 1,775 lakh crore in 2019 to Rs 2,830 lakh crore by 2024. Retail digital payments have experienced extraordinary growth, climbing from 162 crore transactions in the 2013 fiscal year to over 16,416 crore by fiscal year 2025—an increase of nearly 100-fold over 12 years. This growth in digital payment infrastructure and performance is also reflected in the RBI’s Digital Payment Index, which has increased more than four-fold over the past six years, reaching 445.50 for March 2024, compared to 100 in March 2018. 
“UPI has been the most significant contributor to the growth of digital payments in India, growing with a remarkable CAGR of 74% over five years,” the RBI stated in its report.
Substantial increases in transaction volumes have accompanied the rise of digital payments. Since 2023, digital transactions have surged 94 times in volume and over 3.5 times in value. Over the last five years, digital payments in India have grown 6.7 times in volume and 1.6 times in value, resulting in a five-year CAGR of 45.9% in volume and 10.2% in value.
T. Rabi Sankar, the RBI’s deputy governor, commented, “When it comes to payment systems, the Reserve Bank has always endeavored to stay ahead of the curve. It has been the Bank’s policy to encourage innovation in the payment sector. RBI regularly engages with payment system operators and strives to provide a nurturing environment. Fueled by innovation and regulatory support, our payment systems have become among the most modern globally.”
