Unified Payments Interface (UPI) QR codes recorded the fastest growth in digital payments infrastructure in the financial year 2024-25, with a 91.5 per cent jump over the previous year, reaching 657.9 million, according to the latest data from the Reserve Bank of India (RBI).
This sharp surge in UPI QR code adoption was accompanied by a slowdown in credit card transaction growth, which registered a year-on-year increase of just 7.94 per cent. Debit card growth remained modest as well, rising only 2.7 per cent to 991 million cards in circulation.
The rapid expansion of UPI QR codes is largely attributed to increasing deployment by leading payment platforms such as Google Pay, Paytm, and PhonePe.
The number of banks going live on the UPI network has continued to rise, reaching 668 as of April. Bank officials expect this growing participation to drive further increases in the value of UPI transactions.
In March 2025, UPI transactions hit a record ₹24.77 lakh crore, reflecting a 25 per cent increase in value and a 36 per cent jump in volume compared to the same month last year.
UPI has firmly established itself as the dominant mode of digital transactions in India. According to the RBI’s annual report, nearly four out of every five digital payments in FY24 were conducted through UPI. Its share of the total digital payment volume rose from 73.4 per cent in FY23 to 79.7 per cent in FY24. In FY20, this figure stood at just 36.8 per cent.
To promote digital payments, the RBI continues to introduce initiatives such as the “Har Payment Digital” campaign, which aims to raise awareness and adoption of digital transactions across the country.
Additionally, the RBI has granted flexibility in revising transaction limits for UPI-based in-person merchant payments. The National Payments Corporation of India (NPCI) can now adjust these limits based on user needs, with appropriate safeguards—making UPI even more convenient and user-friendly.
-IANS