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In the third quarter of 2024, the State Bank of India recorded nearly ** UPI transactions in India. HDFC Bank Ltd followed, with Bank of Baroda ranking third in the same period. The value of UPI-based digital payments has increased significantly due to the increased penetration of smart service applications and digital technologies. 

Adoption of UPI in India

Unified Payment Interface (UPI) is a real-time, mobile-based payment system that enables instant transactions. UPI is at the forefront of India’s digital payments and is now being accepted by countries where international merchant payments are accepted. Having grown rapidly in recent times, UPI has now accounted for the majority of India’s digital transactions, making it the preferred mode of payment for millions of users. Fintech players, such as PhonePe and Google Pay, lead the segment in terms of usage.

Expanding  financial inclusion via UPI

In 2022, the Reserve Bank of India (RBI) introduced the integration of credit cards with UPI to offer cardholders a smooth and digitally enhanced credit card experience. This initiative of moving credit on UPI will be significant in extending the digital payments ecosystem in India, bypassing hardware devices other than just the smartphone and QR codes to complete transactions.