UPI: From small steps within India to giant leap in global financial arena
New Delhi, Aug 25 (IANS) When Prime Minister Narendra Modi launched BHIM UPI (Bharat Interface for Money – Unified Payments Interface) App during the inauguration of the “DigiDhanMela” on December 31, 2016, he had urged people to make digital payments a habit to transform the country into a cashless economy.
On Tuesday, he recalled the transformative journey that has marked a major turning point in India’s digital payment journey. Highlighting the scale and reach it has achieved in a decade, PM Modi posted on X that UPI’s remarkable journey is something every Indian can be proud of and invited citizens to share their experiences of using the platform and how it has impacted their daily lives.
Digital payments have indeed emerged as one of the most remarkable innovations in India’s financial ecosystem, reshaping the way citizens transact and positioning the country as a global leader in digital payments. What was initially a modest platform has become the backbone of India’s financial transactions, which, as observed by the Prime Minister in another post, “registered nearly a 13,000-fold rise in transaction value”.
In the first month of operations in August 2016, UPI recorded around 90,000 transactions, while in FY 2025-2026 it accounted for 84 per cent of India’s digital payments.
Meanwhile, the number of banks live on the platform increased to 703 in FY2025-26 from 44 in FY 2016-17, which is said to include public and private sectors, small finance, and cooperative banks.
Developed by the National Payments Corporation of India (NPCI), UPI allows Indian users to make real-time payments using apps like BHIM, PhonePe, Google Pay, and Paytm. The numbers themselves tell a compelling story. In its first year, UPI processed fewer than 2 crore transactions. By 2026, that figure rose to more than 24,000 crore transactions, worth nearly Rs 314 lakh crore. The Prime Minister has repeatedly highlighted these figures to underscore India’s leadership in digital payments, noting that UPI now accounts for nearly half of global real-time payment transactions.
In its June 2025 report, titled “Growing Retail Digital Payments: The Value of Interoperability”, the International Monetary Fund (IMF) highlighted UPI as the largest retail fast-payment system globally by transaction volume. It stated that UPI’s scale and interoperability have been key drivers of its rapid adoption, enabling users to freely choose among multiple apps and banks while maintaining seamless transactions.
This recognition underscores India’s leadership in digital financial infrastructure and its transition toward a cashless economy. It has evolved into a citizen-centric revolution, one that empowers ordinary people, where shoppers, street vendors, farmers, and students — all use digital payments with ease.
Beyond India, UPI has been integrated internationally to facilitate seamless payments for Indian tourists, expatriates, and businesses, often through QR codes. UPI is accepted in several countries including Bhutan, Nepal, France, the UAE, Singapore, Cyprus, and Qatar, with ongoing expansions in Europe, Southeast Asia, and the Middle East. This global footprint reflects India’s ambition to export its digital innovations, turning UPI into a symbol of soft power.
UPI is thus proof that India can set standards for the world, not merely follow them. The platform has immense potential to provide the basis for a stronger bilateral business and economic partnership with other jurisdictions and helps buttress India’s soft power.
Incidentally, many institutions across different countries are reportedly exploring setting up UPI-like platforms. The journey of UPI thus reflects a dual narrative, one of numbers and scale, and another of pride and inclusivity. The path of transformation over the past 10 years is a testament to India’s ability to innovate at scale and to democratise technology.
As UPI enters its second decade, it stands not only as a financial platform but as a symbol of India’s digital confidence, a reminder that technology can indeed be a turning point in a nation’s journey.
–IANS
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