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With over 500 million consumers and 65 million merchants, unified payments interface (UPI) has evolved from a digital payment platform into a daily habit, driving financial inclusion, enabling access to credit, and fuelling growth for micro and small enterprises across India, according to a report released here on Wednesday.

The report, launched at the Global Fintech Fest (GFF) 2025 by the National Payments Corporation of India (NPCI) and the Boston Consulting Group (BCG), highlights how India’s UPI has set a new global benchmark, accounting for nearly 50 per cent of global real-time payment volumes and 84 per cent of all retail digital payments within the country.

UPI’s presence now spans 99 per cent of India’s more than 19,000 pin codes, catalysing economic momentum nationwide.

Between FY23 and FY25, consumer durable loans grew 10x and personal loans 4.4x in high-UPI growth districts. UPI Autopay transactions have tripled over the past year, and two in three users report improved access to financing since adopting UPI.

Beyond its national success, UPI is emerging as a global model for secure, interoperable, and scalable digital public infrastructure.

With innovations such as LiteX (offline payments), tap-and-pay, UPI for IPO subscriptions, Credit Card on UPI, and UPI Autopay, the platform is transitioning from embedded payments to embedded finance unlocking new avenues of financial innovation and access.

“UPI has transformed the way people pay and businesses grow, while earning global recognition as a model for digital public infrastructure. Beyond convenience, UPI is bringing micro and small enterprises into the formal economy, empowering women financially, and expanding credit access in regions with higher adoption,” said Sohini Rajola, ED – Growth, NPCI.

As India advances toward its Viksit Bharat 2047 vision, UPI continues to serve as a cornerstone of the nation’s digital transformation, strengthening financial infrastructure, empowering MSMEs, and accelerating the shift to a digitally driven economy.

“UPI has changed age-old habits of cash usage and has the potential to overtake cash in the coming years, with strong momentum across P2P and P2M transactions,” said Vivek Mandhata, Managing Director and Partner, BCG.

The report highlights UPI’s transformative role in India’s merchant ecosystem. Business loans have grown 4.2x in high-UPI growth districts compared to low-growth regions since FY23. Eight in ten merchants report higher staff productivity thanks to tools such as UPI Soundbox.

Beyond its national success, UPI is setting a global benchmark for secure, interoperable, and scalable digital payments. Countries around the world are now looking to replicate India’s model of inclusive digital public infrastructure, said the report.

(With inputs from IANS)