India Targets 300 Million More UPI Users as It Pushes Global Expansion

UPI has already transformed the way over 450 million Indians make payments. India is now aiming to bring 200–300 million more users onto its flagship Unified Payments Interface (UPI) platform. This move will significantly boost the adoption of digital payments in the country. This will also position UPI as a global standard for real-time payments. 

Breaking the ‘Cash Memory’ 

UPI is enabling smartphone users to scan QR codes and transfer amounts ranging from a few rupees to ₹500,000 seamlessly. During its next phase of expansion, UPI will also include delegated accounts for children, household staff, and others who lack traditional banking access. These innovations are part of an effort to make digital transactions the norm, even in cash-dependent segments. 

Global Push for UPI 

As per a PwC report, India now accounts for 46% of global digital transactions. It has witnessed a 90-fold increase in digital payments over the last 12 years. The Indian government is leveraging this success to promote UPI overseas. 

With support from foreign embassies and the RBI, the Indian government has signed agreements with countries like Singapore and the UAE. Future goals include enabling cross-border payments for education and services. In 2024, Indian diaspora sent nearly US$129 billion via UPI transactions to India. 

Expanding Features and Credit Services 

NPCI is enhancing UPI’s usability by adding multilingual interfaces and chat-based transactions. It is also piloting vision recognition technology for parking payments. 

UPI’s architecture is also being explored to support credit-as-a-service models. These systems would allow lenders to make smarter credit decisions based on transaction behaviour and facilitate small-ticket loans and better collections. 

Challenges in UPI Adoption 

Despite UPI’s meteoric rise, its zero-cost model poses challenges for long-term viability. 

The Merchant Discount Rate (MDR) — previously set at 30 basis points — was waived in 2020 to boost adoption. However, the government incentives offered to offset this fell sharply from ₹36 billion in 2024 to just ₹15 billion in 2025. Industry players have since lobbied for the return of nominal transaction fees, especially for large merchants. 

Conclusion

UPI stands at a crossroads. Its unprecedented success has redefined digital payments in India and is now becoming a model for the world. However, its future will hinge on balancing accessibility with financial sustainability. As India aims to onboard millions more and expand UPI globally, careful policy decisions — especially around transaction fees — will be key to keeping momentum intact.
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