Scale and adoption milestones
UPI’s growth over the past decade is reflected in both transaction volumes and user adoption.
Akash Sinha, Co-founder and CEO of Cashfree Payments, said UPI processed around 230 billion transactions worth ₹300 lakh crore in 2025, accounting for 57% of all transactions, compared with 38% for cash.
Adoption has also broadened across demographics and geographies.
Girish Krishnan, Director – Payments & Merchant Services at Amazon Pay India, said online payment adoption rose 35% over the past year, with increased usage among women and Gen Z.
He added that Amazon Pay UPI has over 110 million users, with nearly 75% of usage coming from Tier 2 and Tier 3 cities, indicating strong penetration beyond metros.
Deepak Chand Thakur, CEO and Co-founder of NPST, noted that six in ten UPI transactions are now merchant payments, spanning small vendors to large retailers.
Shift in everyday payments
Experts say UPI has normalised digital payments across routine transactions.
Siddharth Mehta, Co-founder of Kiwi, said payments have become instantaneous and embedded in daily behaviour, increasing transaction frequency while enabling real-time tracking of expenses.
Sinha said the transition from cash to digital records has improved visibility into spending, making it easier for users to monitor and manage finances.
Financial inclusion and access
UPI has also served as an entry point to formal financial services.
Krishnan said many users begin with payments and expand into other services as they build transaction histories. This data trail supports access to credit and financial products over time.
Anand Kumar Bajaj, Founder, MD and CEO of PayNearby, said digitised transactions are helping users better understand income and spending, contributing to improved financial awareness and discipline.
Sinha added that transaction data is used to underwrite credit for first-time borrowers, particularly in smaller towns.
Gurjodhpal Singh, CEO of Tide India, said UPI has reduced barriers for individuals and small businesses, enabling broader participation in the formal financial ecosystem.
Expansion beyond payments
UPI’s role has expanded into adjacent financial products.
Krishnan said users are adopting services such as wallets, fixed deposits (starting from ₹1,000), and digital gold alongside payments. He added that integrating these services into payment journeys simplifies access.
Sinha highlighted UPI Autopay, which enables automated investments, including small-ticket SIPs, bringing more users into disciplined investing.
Mehta pointed to the rise of credit-on-UPI and EMI-based options, extending short-term credit at the point of transaction.
Thakur said the next phase will be driven by embedded finance, where payments, credit, and savings are integrated into a single flow.
Risks and safeguards
As usage scales, risks have shifted towards user behaviour and fraud.
Sinha said 56% of reported fraud cases in FY2025 were linked to digital payments, underscoring the need for stronger safeguards.
Krishnan said platforms are deploying measures such as biometric authentication and device-based verification to prevent unauthorised access.
Bajaj and Singh highlighted risks including overspending due to frictionless payments and social engineering fraud, emphasising the need for user awareness and regular monitoring of transactions.
What the next decade could bring
Experts expect UPI to evolve further as a financial infrastructure layer.
Thakur said focus areas include merchant-side capabilities, such as payment orchestration, risk management, and merchant underwriting.
Sinha pointed to emerging areas such as AI-led or “agentic” payments and the international expansion of UPI for cross-border transactions.
Krishnan said deeper use of transaction data could enable more personalised financial insights, supporting better planning and decision-making.
Singh added that as UPI integrates further with credit and investment products, ensuring responsible usage alongside accessibility will be key.
After a decade of growth, UPI has moved beyond its role as a payments system to become a central pillar of India’s digital financial ecosystem, with its next phase likely to focus on integration, scale, and sustainability.
