UPI retains top spot as India’s most used retail payment system

While UPI dominates transaction volumes, RTGS leads in value, accounting for 68.7% of total transaction value, while NEFT, cards, and cheques contribute 15.1%, 0.8%, and 2.3% respectively, despite representing smaller shares by transaction volume

India’s Unified Payments Interface (UPI) continues to dominate the country’s retail fast payment ecosystem, according to the latest Payments Systems Report released by the Reserve Bank of India (RBI). The report highlights that UPI transaction volumes have surged to 17,221 crore in 2024, a massive jump from 1,079 crore in 2019. Similarly, the total value of UPI transactions rose to Rs 246.8 lakh crore in 2024 from Rs 18.4 lakh crore five years ago, reflecting rapid adoption across consumers and businesses.

In the first half of 2025, UPI payments reached 143 crore transactions, up from 117 crore in the same period last year, marking a 22% increase in volume. The value of transactions during H1 2025 grew by 34.7% to Rs 10,637 lakh crore, compared to Rs 7,897.1 lakh crore in H1 2024. The report attributes this growth to ease of use, convenience, and round-the-clock availability, which have made UPI the preferred choice for millions of users nationwide. UPI now accounts for 84.8% of total payment transactions by volume in the first half of 2025.

Other payment methods

Despite UPI’s dominance in transaction numbers, RTGS (Real-Time Gross Settlement) continues to lead in transaction value. RTGS, which facilitates high-value transfers with a minimum of Rs 2 lakh, represents 68.7% of total transaction value but only 0.1% of total transactions. NEFT (National Electronic Funds Transfer) accounts for 3.9% of transactions by volume and 15.1% by value. Card payments make up 2.7% of transactions by number and 0.8% by value, while checks account for 0.2% by volume and 2.3% by value.

The RBI report underscores the growing reliance on digital payment systems in India, with UPI continuing to reshape the retail payments landscape, while traditional high-value channels like RTGS remain vital for bulk transfers.