Dilip AsbeManaging Director and Managing Director of National Payments Corporation of India (NPCI), looking for significant support from the Reserve Bank of India (RBI), the government and the financial ecosystem to find ways to bring in an additional 200-300 million people to Unified Payments Interface (UPI) platform.
The government-backed NPCI, responsible for running the country digital payment revolutionhas expanded UPI usage within the country while NPCI International Payments Ltd (NIPL), the international arm of NPCI, has collaborated with international partners to increase further access. The initiatives come at a time when UPI is already most popular digital payment method, likely to reach a saturation point. Although saturation does not mean the end of UPI’s expansion, especially in the international markets; UPI and similar payment methods may not necessarily be the most preferred options for purchasing valuable items such as cars and durable goods.
“We need significant support from the RBI, the government and the ecosystem to bring another 200-300 million people into the digital payments week. Digital payments are now an integral part of life – I don’t think we’re going back to cash.” Asbe saidadding that UPI can grow 10 times from its current base.
“We see about 450 million users using UPI, with about 200 million daily active users. I think we are at the edge of the revolution now because, from here, the network effects will be added to the system,” Asbe said. stated.
“UPI, from its current base, has the potential to grow 10x. We are at a stage now where we have to aim for 10x growth. I don’t know if it will take 10 years or less, but 10x growth is possible,” added Asthbe.
UPI’s expansion is also part of India’s exponential growth in the number of internet users. According to a report by IAMAI and KantarIndia is expected to surpass 900 million internet users by 2025, the majority of which are from rural areas. Although growth has slowed, rural regions now account for 55% of internet users. Over-the-top (OTT) streaming apps lead as the most popular activity, with digital commerce and payments which are also seeing notable participation from rural users.
According to Ministry of FinanceIndia has seen an unprecedented increase in digital transactions, marking a significant milestone in its journey towards becoming a cashless society. At the forefront of India’s digital payments revolution is UPI with a record hit of 16.73 billion transactions by December 2024.
“Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging multiple banking functions, seamless fund routing and merchant payments into one entity. It has not only made financial transactions fast , safe and simple, but also empowered individuals, small businesses and merchants, driving the country’s transition towards a cashless economy, says the Ministry of Finance in a press release. statement.
By 2024, UPI processed approximately 172 billion transactions, up 46% from 117.64 billion in 2023. This increase underscores a broader cultural shift towards financial inclusion, of which UPI is a central pillar.
International cooperation
NPCI International Payments Limited (NIPL), the international arm of NPCI, has collaborated with Magnatia payment solutions provider in the Middle East, to bring forward QR-based UPI merchant payments with Magnati’s Point of Sale (POS) terminals in the United Arab Emirates.
The collaboration aims to expand the QR-based payment network for merchants in the West Asian country by enabling more merchants to provide UPI as a payment method to Indian travelers. The partnership will initially offer UPI acceptance across Dubai Duty Free zones and is expected to enhance the shopping and payment experience for Indian tourists. Future plans include expansion across key trade categories such as retail, hospitality, transport and supermarkets.
Flagship of India UPIan example of effective Digital public infrastructure (DPI), is recognized as one of the world’s most successful real-time payment systems.
“Partnering with Magnati is a strategic step towards expanding UPI acceptance in the UAE. This collaboration aligns with our vision to provide Indians with a global digital payment acceptance network and enhance their payment experience abroad. Additionally, it paves the way for broader financial and cultural connections between India and the UAE,” said Ritesh Shukla, CEO of NPCI International.
The partnership will offer seamless payment alternative to the over 12 million Indians who travel to Dubai and the UAE every year. It integrates an Indian solution into the global digital payment network, enabling UAE merchants to better serve the growing Indian consumer base. By expanding UPI acceptance in key markets such as the UAE, NPCI International aims to highlight India’s global leadership in digital payments innovation. This move is also expected to set a new benchmark for cross-border payment interoperability and strengthen economic and cultural ties between India and the rest of the world.
India is looking to extend UPI use worldwide so that any Indian with a UPI account can make a payment using UPI. So far, UPI has expanded to Peru, Mauritius, Sri Lanka, Singapore, France, Bhutan and Nepal.
Year 2025, UPI can expand to another four to six countries.
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