New Delhi, May 19: Unified Payments Interface (UPI) continued to strengthen its dominance in India’s digital payments ecosystem, accounting for 85.5 per cent of total transaction volume in the second half of 2025, according to a Reserve Bank of India (RBI) report.
The data highlights the rapid shift towards digital payment systems in the country, with UPI emerging as the preferred mode for everyday transactions due to its speed, convenience, and wide acceptance across merchants and platforms.
The report noted that the growth in UPI usage reflects increasing financial digitisation, expansion of smartphone penetration, and improved digital infrastructure across urban and rural areas.
Experts say the strong adoption of UPI has significantly reduced reliance on traditional payment methods such as cash and card-based transactions, especially in retail and peer-to-peer payments.
The RBI observed that India’s digital payments landscape continues to evolve rapidly, with UPI playing a central role in driving financial inclusion and supporting a cash-light economy.