Report Indicates 93% Digital Payments Creating Digital Payments India Ecosystem

-Sambhrant

UPI dominates the digital payments India landscape, accounting for 93 percent of total transaction value as traditional payment methods continue to decline.

According to a recent report, United Payments Interface (UPI) holds the leading position among digital payments India platforms. This indicates a maturing digital payment infrastructure. As of 9MFY26, 93 per cent of payment value and 99.8 per cent of transaction volume are due to digital payments. The report notes that traditional instruments, such as debit cards and Prepaid Payment Instruments (PPIs), are stable or declining. Across the country, UPI is replacing low-value transactions. At the same time, systems like NEFT, IMPS, and NACH retain their place in the financial ecosystem. These systems are especially relevant for high-value and bulk payments.

Furthermore, data from the report shows that mid-to-high value transactions continue to be facilitated by NEFT, whose average ticket size at around ₹48,289 remains significantly higher than UPI digital payments India’s average ticket size of ₹1,298 during the same period. Underscoring the immense upward growth trajectory of UPI, the report highlighted its rise in retail payment volumes from 73.6 per cent in FY23 to 86 per cent in FY26E. Thus, there remains potential for UPI’s share expansion in terms of payment volume in the coming years, following UPI systems being embedded in ecosystems.

Moreover, the rise of UPI as a preferred digital payment platform India has led to a corresponding decline of specific physical instruments. The only outlier to this trend is credit cards, which remain a popular choice for e-commerce and high-value purchases. These are encouraging signs for the Indian Government and the Reserve Bank of India’s (RBI) efforts in promoting digital adoption. Digital payments are expanding in underserved regions such as Tier-II and Tier-III cities through initiatives such as the Payments Infrastructure Development Fund (PIDF). CIO Bulletin views UPI’s strong performance as an indication of setting the benchmark for digital payment systems worldwide and transforming the payments landscape of all the international markets in which it has planned to expand.

About the Author

Sambhrant Das is a content writer at CIO Bulletin. He is passionate about writing well-researched and curated articles on topics standing at the intersection of
business, technology, and much more.

As an International Relations graduate, he is an avid reader and holds a keen interest in geopolitics. He is driven by the purpose of amalgamating lucid
language and conceptual rigor in all his write-ups.