Rapid Increase in UPI QR Code Usage: Up to 657.9 Million Transactions in a Surge of 91.5%, While Credit Card Transactions Exhibit Slower Growth
Digital Payments in Mumbai: UPI QR codes have been on a rollercoaster ride, mirroring a significant shift in India's digital payment landscape during the financial year 2024-25. A jaw-dropping 91.5% increase in usage propelled UPI QR codes to a staggering 657.9 million, according to the Reserve Bank of India (RBI).
While traditional methods, such as credit card transactions and debit card additions, saw a meager 7.94% and 2.7% growth, respectively, UPI QR codes took center stage. This accelerated growth can be attributed to the expanding deployment of UPI by popular platforms like Google Pay, Paytm, and PhonePe, and the increasing number of banks going live on UPI [1].
March 2025 marked a record-breaking Rs 24.77 Lakh crore in UPI transactions, signifying a 25% increase in value and a whopping 36% increase in volume compared to the previous year. UPI has become India's go-to for digital transactions, with nearly four out of five digital payments conducted on the Unified Payments Interface (UPI) in FY24 [1].
Notably, UPI's share of digital transactions has skyrocketed from 73.4% in FY23 to 79.7% in FY24 [1]. It's a testament to the government-backed initiatives, digitalization, and the increased trust in secure payment technologies that have blurred the lines between cash and digital transactions.
Government initiatives like the Unified Payments Interface (UPI) and Jan Dhan Yojana have played a pivotal role, making digital payments accessible to both urban and rural populations [2][3]. The shift towards a cashless economy, encouraged by government policies and ongoing digitalization efforts, has been another contributing factor [3].
Increasing trust in secure payment technologies, such as UPI QR codes, comes from their robust security features, including two-factor authentication and secure payment processing [4]. Moreover, the convenience offered by the simplicity of scanning a code and the reduced cash handling costs for merchants have made UPI QR codes a win-win situation [1][4]. As of now, over 9 million merchants in India accept QR code payments, widening their reach and usage.
The Indian digital payments industry is expected to maintain its momentum, with a significant 42% increase in FY2023-2024 as reported by PwC [1]. Furthermore, the ongoing expansion of 5G networks in India will enhance the speed and reliability of UPI QR code transactions, fueling this growth spree.
Lastly, the positive shift in consumer behavior towards digital payments, as seen in the 77% of consumers reporting increased QR code usage [1], suggests that India is poised to be one of the fastest-growing markets for QR code payments in the Asia Pacific region.
Technology and finance have both played significant roles in the surge of digital payments in Mumbai. The expanding deployment of secure payment technologies, such as UPI QR codes, has been fueled by advancements in technology, like the upcoming 5G networks in India, which promise enhanced speed and reliability for UPI QR code transactions. This technological progression is anticipated to further drive the significant growth seen in the digital payments industry, making India one of the fastest-growing markets for QR code payments in the Asia Pacific region.
