Exploring the Exponential Growth of UPI in India: A Study on Digital Payment Transformation (2016–2024)

Abstract

This paper analyses the rapid growth of Unified Payments Interface (UPI) transactions in India from 2016 to 2024, focusing on both transaction volume and value. UPI, introduced by the National Payments Corporation of India (NPCI), has transformed the digital payment landscape by enabling real-time, bank-to-bank transfers. The adoption of UPI grew exponentially, particularly during the COVID-19 pandemic, which accelerated the shift to contactless payments. From a modest start in 2016, with 2.65 million transactions and a value of ₹893.07 crores, UPI has witnessed continuous growth in both volume and value. By 2024, UPI transactions are projected to exceed 108 billion in volume and ₹1,57,88,817.25 crores in value annually. This growth trajectory highlights the platform's expanding integration across various sectors and its increasing role in facilitating high-value transactions. The paper identifies key drivers of UPI’s growth, including digitalization, government policy, mobile penetration, and the platform's ease of use, along with a comparison of growth phases across the years. UPI’s progression from a peer-to-peer transfer tool to a comprehensive infrastructure for retail, government, and business payments reflects its transformative impact on India's financial ecosystem.