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India’s UPI Set to Surpass Visa’s Daily Transaction Volume: A New Era in Digital Payments

India’s Unified Payments Interface (UPI) is rapidly reshaping the global digital payments landscape. In a remarkable feat, UPI is poised to surpass Visa’s daily transaction volume, setting a new benchmark for real-time payment systems worldwide.


In May 2025, UPI transactions were 12 times higher in value than the combined total of all card transactions. (Representative/AP) | News18
In May 2025, UPI transactions were 12 times higher in value than the combined total of all card transactions. (Representative/AP) | News18

Record-Breaking Transaction Volumes

In May 2025, UPI processed an astonishing 18.68 billion transactions, totaling ₹25.14 lakh crore (approximately $293 billion). On June 1 and 2 alone, the platform recorded 644 million and 650 million transactions, respectively — outpacing Visa’s average daily transaction volume of 639 million during its fiscal year 2024.


This phenomenal growth is a testament to UPI’s deep market penetration and user trust, as millions of Indians continue to embrace digital payments for everyday transactions.


Drivers Behind UPI’s Growth

UPI’s success stems from several key factors:


  • Smartphone Penetration: India’s vast and growing smartphone user base has been instrumental in driving UPI adoption.

  • Government Initiatives: Policies promoting a cashless economy and digital financial inclusion have accelerated usage.

  • Popular Platforms: Payment apps such as PhonePe, Google Pay, and Paytm have made UPI accessible and convenient.

  • Real-Time Settlements: Unlike traditional card networks, UPI offers instant peer-to-peer payment settlements, enhancing user experience and trust.


Together, these factors have fueled a monthly growth rate of 5–7% and an annual increase of nearly 40% in transaction volumes.


UPI’s Global Expansion Ambitions

India is actively pushing to extend UPI’s reach beyond its borders. The government is working to ease compliance and regulatory hurdles to facilitate cross-border payments through UPI, aiming to create a viable alternative to global giants like Visa, Mastercard, and SWIFT.


Already, India has established partnerships with countries such as France and Singapore, paving the way for wider international adoption. This global expansion could revolutionize international remittances and cross-border commerce, making transactions faster, cheaper, and more transparent.


Real-Time Payment: UPI’s Competitive Edge

A defining feature that sets UPI apart from traditional card networks is its real-time payment settlement system. Visa and Mastercard generally operate on deferred settlement models, which can delay fund transfers.


UPI’s instant settlement mechanism not only improves the user experience but also reduces transaction costs and fraud risks. This efficiency has been a key driver of its rapid adoption across India’s digital ecosystem.


Looking Ahead: The Future of UPI

The National Payments Corporation of India (NPCI), which oversees UPI, has ambitious plans to scale the system to handle 1 billion transactions daily. Achieving this milestone would further cement India’s leadership in digital payments and serve as a model for other countries seeking to modernize their financial infrastructures.


As UPI continues to grow and innovate, it exemplifies India’s prowess in leveraging technology to promote financial inclusion and digital empowerment.


Conclusion

India’s UPI is not just a domestic success story but a rising global force in digital payments. Surpassing Visa’s daily transaction volumes signals a shift in the global payments ecosystem, with India leading the way toward faster, more accessible, and cost-effective financial transactions.


With continued innovation and international collaboration, UPI is set to redefine how the world transacts — ushering in a new era of digital finance.


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