UPI: Transforming India's Payment Landscape

This PIB backgrounder reviews the decade-long evolution and transformation of India's Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI). Since its pilot launch in 2016, UPI has grown into a core pillar of India's Digital Public Infrastructure, powering multi-bank, round-the-clock real-time transactions with two-factor authentication and end-to-end encryption. Key evolutionary milestones include BHIM, dynamic QR codes, UPI 2.0, UPI AutoPay, UPI 123PAY for feature phones, UPI Lite, credit line integration, and recent features like UPI Circle and Aadhaar-based face authentication. By FY 2025–26, annual transaction volumes surpassed 24,162 crore. Globally, UPI operates in 11 countries for acceptance and remittances, accounting for approximately 49% of global real-time payment transaction volume as noted in a June 2025 IMF report.