Digital Technology

India’s Unified Payments Interface is set for its next phase of expansion, with the Reserve Bank of India projecting a doubling of users to nearly one billion in the coming years. The forecast underscores UPI’s evolution from a convenience-led payment tool into the backbone of the country’s digital financial ecosystem. Rapid smartphone adoption, deeper internet penetration, and policy-led financial inclusion have accelerated usage across urban and rural markets alike.

India is intensifying efforts to globalize its homegrown digital payments infrastructure, Unified Payments Interface (UPI), by engaging in discussions with eight additional countries seeking to adopt or integrate the platform. The move underscores New Delhi’s ambition to position UPI as a global benchmark in low-cost, real-time payments while strengthening financial ties with international partners. As digital transactions surge worldwide, India’s push for cross-border interoperability aims to benefit both Indian travelers and overseas businesses.

The Reserve Bank of India (RBI) is set to monitor fund transfers more closely through a newly launched net banking platform, aiming to enhance transparency and security in digital transactions. This move comes amid rising concerns over cybersecurity risks and unauthorized fund transfers, reflecting the central bank’s proactive approach to safeguarding the financial ecosystem. The platform will allow the RBI to track transaction patterns in real time, helping detect anomalies and prevent fraud.

Digital payments giant Paytm has unveiled a major redesign of its mobile application, introducing artificial intelligence-driven features, an enhanced user interface, and a new digital gold coin service. The revamp underscores Paytm’s ambition to transform from a payments platform into a comprehensive financial ecosystem, catering to the evolving needs of consumers and merchants.

In a strategic move to accelerate its artificial intelligence (AI) capabilities, Paytm has partnered with U.S.-based AI infrastructure firm Groq to integrate real-time, low-latency computing into its payments and financial services ecosystem. This collaboration will leverage Groq’s advanced Language Processing Unit (LPU) technology to enhance transaction efficiency, fraud detection, and customer insights.

The upcoming Rajasthan DigiFest 2025 is set to position the state as a rising hub for innovation and entrepreneurship, drawing participation from over 30 countries. The event, which aims to foster collaboration between startups, investors, and policymakers, will showcase India’s growing digital ecosystem and Rajasthan’s expanding role in the global startup network.

India’s financial ecosystem is undergoing a transformative shift, as revealed in the Reserve Bank of India’s (RBI) 2024 report on digital payments. The data underscores a dramatic surge in cashless transactions, driven by expanding fintech adoption, robust infrastructure, and government-backed digital initiatives. Unified Payments Interface (UPI) remains the cornerstone of this growth, registering record volumes, while card-based and prepaid instruments continue to gain traction.

Unified Payments Interface (UPI) now processes approximately 85% of all digital transactions in India, solidifying its position as the backbone of the nation's digital payment ecosystem. Reserve Bank of India (RBI) Governor Sanjay Malhotra highlighted this achievement, emphasizing the role of Digital Public Platforms (DPPs) in fostering inclusive, secure, and scalable financial systems. This milestone underscores India's leadership in digital financial inclusion and showcases the effectiveness of its homegrown payment infrastructure.

In a landmark move for digital finance, NPCI International Payments Ltd. (NIPL), the global arm of India’s National Payments Corporation, has signed a Memorandum of Understanding (MoU) with Japan’s NTT DATA to introduce Unified Payments Interface (UPI) acceptance across Japanese merchants. The collaboration aims to enable Indian tourists and business travellers to make seamless payments using UPI-powered apps, while supporting Japan’s ongoing transition to a cashless economy.

Kiwi, a pioneering fintech platform, has introduced an innovative Interest-Back EMI option for UPI transactions, aimed at making everyday purchases more affordable for consumers. The new feature allows users to convert payments into flexible EMIs while earning interest cashback on timely repayments, effectively reducing the cost of short-term borrowing. Designed for digital-savvy customers seeking financial flexibility, this offering leverages the ubiquity of UPI and Kiwi’s data-driven approach to consumer finance.