IMF says India leads world in fast digital payments powered by UPI
By Anjali Sharma
WASHINGTON – According to the latest fintech note released by the International Monetary Fund on Friday noted that India now leads the world in fast digital payments, powered by the rapid growth of the Unified Payments Interface.
The report titled “Growing Retail Digital Payments: The Value of Interoperability” highlights India’s digital transformation, noting that UPI has become the largest retail fast payment system globally by volume, IMF stated.
“India now makes faster payments than any other country,” the IMF noted.
It added that the system’s success is underpinned by its interoperability, which allows seamless transactions across different payment providers and banks.
The report also pointed out a decline in the use of other payment instruments, including debit and credit cards, as more consumers and businesses shift to UPI for convenience and speed.
It said that total digital payments have increased significantly relative to cash usage, suggesting a structural move towards a cashless economy.
“UPI provides a strong example of how interoperable systems can promote widespread adoption of digital payments and financial inclusion,” the note said, encouraging other countries to explore similar open-loop infrastructure to accelerate digital economies.
Fintech notes published by the IMF offer practical guidance to policymakers on emerging trends in financial technology.
India’s digital payment success, through UPI, has already drawn interest from several countries exploring similar platforms or collaborations, further solidifying India’s position as a global fintech leader.
The IMF said that Developed by the National Payments Corporation of India UPI facilitates real-time inter-bank transactions through mobile phones. Since its launch in 2016, it has seen exponential growth, currently processing over 18 billion transactions per month.
UPI transactions witnessed a month-on-month marginal decline in volume, closing at 18.40 billion as per the NPCI data, in June, the.
UPI transactions are projected to reach 1 billion transactions per day by FY27 with UPI expected to account for 90 per cent of total retail digital payment volumes over the next five years, as per a report by PwC India, IMF concluded.
