New Delhi: UPI transactions in January 2025 surpassed 16.99 billion, with the total value exceeding ₹23.48 lakh crore, marking the highest figures recorded in a single month.

Professor Carlos Montes, who is in India for the NXT event at Bharat Mandapam, was briefed on the working and achievements of UPI on Thursday. Professor Montes leads the Innovation Hub for Prosperity at the Cambridge University Business School. A presentation was given by officials from the Department of Financial Services and the National Payments Corporation of India on the success, functionality, and growth trends of UPI. Senior officials from the Ministry of Finance, including Sudhir Shyam, Economic Adviser, and Jignesh Solanki, Director, were also present.

Professor Montes said UPI provides an opportunity for other countries to learn from India’s experience and explore ways to adopt a similar system. He noted that UPI’s growth reflects the government’s efforts in ensuring that digital payment technology remains user-friendly and continuously innovates to meet evolving needs. He added that the success of UPI shows the level of trust it enjoys among users and its potential for global adoption.

For the financial year 2023-24, digital payments in India have expanded significantly, with UPI contributing to 80% of retail transactions. The total transaction volume for the year exceeded 131 billion, with a total value of over ₹200 lakh crore. Its ease of use, coupled with the growing number of participating banks and fintech platforms, has made UPI the preferred mode of real-time payments for millions across the country.

As of January 2025, over 80 UPI applications, including bank apps and third-party providers, are operational, with 641 banks live on the UPI network. In the current financial year, person-to-merchant transactions accounted for 62.35% of the total UPI volume, while person-to-person transactions made up 37.65%. In January 2025, 86% of person-to-merchant transactions were for amounts up to ₹500, highlighting UPI’s role in facilitating small-value payments and its widespread acceptance among users.

India’s digital payments ecosystem is also expanding beyond its borders. Sudhir Shyam, Economic Adviser at the Department of Financial Services, said UPI’s international reach is growing, enabling seamless cross-border transactions for Indians travelling abroad. UPI is now live in over seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, allowing Indians to make payments overseas. This expansion is expected to strengthen remittance flows, improve financial inclusion, and enhance India’s position in the global financial sector. He also mentioned that other countries have shown interest in adopting UPI.

Jignesh Solanki said that while online transactions have grown significantly over the years, UPI remains the dominant mode due to its ease of use and low transaction costs. The government is focusing on new innovations to extend UPI’s reach to underserved areas. The session concluded with a demonstration of UPI’s working to the delegation.

BI Bureau