India now facilitates the quickest payments worldwide, fueled by UPI: IMF report.

According to a recent note by the International Monetary Fund (IMF), India has become the world leader in rapid payments, propelled by the extensive use of the Unified Payments Interface (UPI). Titled ‘Expanding Retail Digital Payments: The Importance of Interoperability,’ the document emphasizes a notable transition from cash and card transactions to UPI since its introduction in 2016. UPI, created by the National Payments Corporation of India (NPCI), currently handles over 18 billion transactions each month, establishing it as the largest retail fast payment system globally by transaction volume. The IMF noted that measures of cash usage, like ATM withdrawals, have decreased in areas where UPI adoption is higher, signaling a lasting shift towards digital payment methods. The authors from the IMF suggest that policymakers should carefully observe the rise of major competitors within the UPI ecosystem to maintain equitable competition. They recommend employing various metrics to identify anti-competitive practices and sustaining communication with both current and potential service providers. Although there was a slight 1.5% decrease in UPI transactions in June 2025 from May, year-over-year growth persisted robustly, with transaction volume up 32% and value increasing by 20%. Daily transaction volumes increased as well, indicating the ongoing development of India’s digital payment framework.