UPI, India’s instant domestic payments system, has been hailed as a model for real-time payments around the world, and is seeing ongoing growth in both the numbers of transactions being conducted each month and the volume of money being moved across the payment system. However, average transaction data also suggests that it is seeing its use case evolving – and that it may be taking over from cash for many people.

Data from the payment scheme’s operator NCPI and the Reserve Bank of India shows that the volume of transactions each month using UPI has climbed relatively consistently over the past few years, with newly published data for June showing ₹24tn ($280bn), a 20% YoY increase on June 2024’s ₹20tn ($240bn), and slightly below May’s all-time high of ₹25tn ($295bn), . 

The number of transactions, however, has increased faster, rising 32% YoY in June to reach 18.4 billion, up from June 2024’s 13.8 billion. As a result, the average transaction value (ATV), has dropped over the same period by -10%, continuing a trend that has been occurring for several years.

This indicates that much of the increases in transactions are coming from lower value payments, which are likely to have been previously conducted using cash. Data from the World Bank’s Findex database shows that India has seen a transformation in financial access over the past few decades, with the share of adults with access to a financial account rising from 35% in 2011 to 78% in 2021. The latest data for 2024 is not yet available, but when it is published later this month it is expected to show further improvements, as UPI is widely considered to be playing a vital role in enhancing financial inclusion in India. 

This is also supported by growth in other metrics on the use of UPI. Data from NPCI shows that the number of banks that are live on UPI reached 675 in June 2025, up from 602 a year earlier, while Reserve Bank of India data shows that the number of QR codes used for UPI payments grew from 569 million in May 2024 to 670 million in May 2025, with June’s data still to be published.

Meanwhile, while there are some limited partnerships to enable UPI to be used cross-border, the Reserve Bank of India does not publish any data on its limited use internationally. However, it does show a shift away from cash for Indians spending internationally. 

The data shows a consistent increase in the cross-border use of cards and digital wallets issued in India both online and at point-of-sale (PoS) terminals, while ATM withdrawals have consistently declined. May 2025 saw online cross-border transactions increase by 19% YoY and PoS transactions grow by 14% YoY, while ATM withdrawals reduced -14% YoY.

How can I benchmark my strategy in India?

Lucy Ingham

LinkedIn

Lucy is VP of Content & Editor-in-Chief at FXC Intelligence, overseeing all content and taking deep dives into the trends and data driving changes in payments. Before joining FXC Intelligence, Lucy worked as a technology journalist and editor, interviewing CEOs and major names across enterprise technology, including fintech. She has an MSc in Development Anthropology from Durham University.