India’s Unified Payments Interface (UPI), which now powers over 20 billion transactions a month, has emerged as the world’s largest retail fast payment system and is drawing global recognition, including from the International Monetary Fund (IMF), for revolutionising digital payments.
The IMF, in its June 2025 Fintech Note titled “Growing Retail Digital Payments: The Value of Interoperability”, described UPI as a model that transformed India’s payment landscape. In its September issue of Finance & Development, the multilateral lender carried a feature article noting that UPI has set a global benchmark for interoperability.
According to the National Payments Corporation of India (NPCI), which developed UPI in 2016, the platform accounted for nearly 85 per cent of all digital transactions in India last month, handling payments worth over ₹24.85 lakh crore. With in effect from September 15, NPCI has also raised the transaction limit for Person-to-Merchant (P2M) payments to ₹10 lakh a day for verified categories, enabling wider adoption for high-value purchases.
India’s success with UPI stems from its broader “Digital Public Infrastructure,” built on Jan Dhan Yojana bank accounts, Aadhaar biometric identity and affordable mobile internet. Unlike closed digital wallets, UPI’s interoperable design allows direct transfers between bank accounts through any app, creating a level playing field for banks, fintechs and big tech companies.
The IMF observed that this open architecture prevented monopolies, empowered consumers and encouraged innovation. For India, the system has also served as an instrument of financial inclusion, with over 89 per cent of adults now holding bank accounts.
In Singapore, UPI has been linked with PayNow to enable instant cross-border transfers. In the UAE and Mauritius, Indian travellers can pay for goods and services using UPI. In France, Indian tourists can now pay at the Eiffel Tower by simply scanning a QR code and settling the bill in rupees. Nepal and Bhutan have already adopted UPI for transfers, and talks are ongoing with central banks and fintechs across Asia, Africa, and Europe.
From small vendors in Indian markets to cross-border travellers abroad, UPI is redefining the ease and scale of digital transactions. UPI is now being seen as an instrument of empowerment. India’s digital payment model is being studied worldwide as a template for financial inclusion.
