The Reserve Bank of India (RBI) has announced several upgrades to improve and modernize Unified Payments Interface (UPI) system, making digital payments more convenient for users. RBI announced that UPI transactions will be possible through smart devices like smartwatches and even cars. The goal of these upgrades is to simplify digital payments and make them more accessible to everyone.
A key function is an artificial intelligence (AI)-powered voice authentication system that is expected to eventually support over 28 Indian languages. This advance aims to increase the use of digital payments, especially among non-English speaking and rural users. Developed in-house by RBI, the system is designed to handle UPI-related queries and mandates efficiently.
Currently, the feature is available in English, but support for Hindi and other Indian languages will be added soon. Users can check transaction status, lodge complaints and track their progress through this platform. The system provides clear step-by-step instructions that help both customers and banks solve problems faster and more efficiently.
“Unified Payments Interface or UPI is (a) critical digital public platform. It has changed the payment landscape… About 85% of digital payment transactions in India today are done through UPI. About 20 billion transactions are done using UPI every month, representing a value equivalent to over USD 280 billion,” Sanjay MalhotraGovernor, Reserve Bank of India, said recently.
“A recent research study on the impact of UPI suggests that higher UPI adoption is associated with lower demand for cash. Another study shows that a one percent increase in UPI transaction volumes correlates with a 0.03 percent increase in GDP growth,” Malhotra added. UPI has allowed close to 490 million unique users to make almost 20 billion transactions every month, almost half of the global real-time payment volumes.
Reserve Bank of India reported that in the first half of 2025, digital payments accounted for 99.8% of all transactions by volume. By value, digital transactions represented 97.7% of the total, amounting to an impressive 1,536 lakh crore (about USD 17.4 trillion) during the same period. UPI dominated the landscape accounting for about 85% of all digital transactions in volume in the first half (H1) of 2025. According to the RBI, this increase is largely driven by UPI’s widespread use for low-value payments.
UPI uses IoT for seamless payments
UPI is too embrace the Internet of Things (IoT) technology to enable payments through connected smart devices, including watches, glasses and even cars, in addition to smartphones. This innovation aims to make digital transactions faster and more convenient. With IoT-based payments, users no longer need to take out their phones to pay at gas stations, for groceries or for other purchases. Instead, payments can be made directly from connected devices, such as a car’s system, smart watch, smart glasses or even a smart TV. This advancement creates a seamless and simple payment experience, marking an important step towards the future intelligent digital transactions.
“Digital public platforms are of enormous importance to central banks. Central banks not only act as the ultimate guardians of economic resilience. They are also, in many countries, responsible for strengthening financial inclusion and for operating and regulating critical payment and settlement infrastructure that forms the backbone of modern economies… Development of Fast Payment Systems (FPS) adapts to central public payment systems for all, including efficient public payment systems to create safe, addiction and to support digitization,” Malhotra said.
According to a Reportthe global cashless payments market is expected to grow to approximately USD 295 billion by 2032 from approximately USD 152 billion by 2025, at a compound annual growth rate (CAGR) of nearly 10% during the period. In 2024, North America held the largest market share in the cashless payments market, with 35.24%.
“Digital payment systems have reduced delivery costs, minimized revenue leakage and facilitated speedy implementation of emergency relief programmes, especially during the global covid-19 pandemic,” the RBI chief informed.
Meta AI glasses to enable UPI payments in India
Cashing in on the UPI Boom, Meta (NASDAQ: META) has announced that users in India will soon be able to make UPI QR code payments of up to INR 1,000 ($11.28) directly through their Meta AI glasses. By simply looking at a QR code and saying “Hey Meta, scan and pay”, users can complete transactions without having to take out their phone or wallet. Payments will be processed through the bank account linked to their WhatsApp, offering a faster and more seamless way to manage everyday purchases.
In January, the National Payments Corporation of India (NPCI) announced that Meta’s WhatsApp Pay, a payment feature that allows users to send and receive money directly within WhatsApp’s chat interface, could offer UPI services to its entire user base in India. As of December 2024, the instant messaging platform’s total Indian user base according to information amounted to approximately 596.6 million, which is largest user base for Whatsapp in the world.
“Ray-Ban Meta eyewear users in India will soon have access to a host of new Meta AI features and experiences designed to make their eyewear even more useful, personalized and fun. From hands-free voice interactions and Hindi language support to UPI Lite payments and festively inspired restyling of your photos, these updates bring useful, more localized features to users’ everyday lives,” Meta said in a statement.
Ray-Ban Meta glasses will also offer full support for Hindi, making it easier for users to interact with Meta AI hands-free. This update enables users to ask questions, get information, take photos and videos, and answer calls and SMS in Hindi. This update uses tools from Sarvamone of the leading basic model companies in India.
India has chosen Sarvam AI, a local startup i generative artificial intelligence (AI), to create the country’s first indigenously developed basic AI model, a significant step in its pursuit of AI leadership.
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