Fast Payments Report 2025

Top IAS Coaching in Haryana | UPSC Compass

Why in News?

India has become the global leader in real-time digital payments.
In June 2025, India’s Unified Payments Interface (UPI) processed 18.39 billion transactions in a single month.
This achievement is part of a detailed study published in the Fast Payments Report 2025, supported by the International Monetary Fund (IMF) and FIS Global.

About the Fast Payments Report 2025:

This report evaluates the strength and adoption of digital public payment infrastructure in 30 major countries.
It introduces a new metric called the Faster Payment Adoption Score (FPAS) to measure how quickly and widely digital payment systems are being used.
It was prepared through collaboration between the IMF and FIS Global, a global financial technology company.

India’s Global Performance:

India secured the top global rank with a FPAS score of 87.5 percent.
Countries like Brazil, Singapore, the United Kingdom, and the United States ranked below India in digital payment adoption.
UPI has emerged as the world’s most widely used real-time payment system, making digital transactions quick, easy, and affordable for everyone.
India’s success is a result of continuous innovation, government support, public-private collaboration, and user-friendly technology.

Scale and Reach of UPI in India:

UPI handles over 640 million transactions per day.
It connects 491 million individuals, 65 million merchants, and 675 banks.
The system has now been expanded to 7 countries, including France, UAE, and Singapore.
UPI is becoming a model for cross-border payments, especially among BRICS+ countries, where India is pushing for regional integration through UPI.

Key Features of India’s UPI Ecosystem:

Interoperability: A unified platform that works across all banks and apps such as PhonePe, Google Pay, Paytm, and BHIM.
Inclusiveness: Designed for all users, including rural populations, with features like Aadhaar integration, USSD access (works on basic phones), and support for multiple Indian languages.
Built on India Stack: Uses powerful digital tools such as Aadhaar, e-KYC, DigiLocker, and the Account Aggregator system for secure and seamless transactions.
High Security Standards: Real-time fraud detection, data tokenisation, and strict compliance with RBI guidelines.
Strong Public-Private Collaboration: UPI is managed by the National Payments Corporation of India (NPCI) in partnership with fintech startups, banks, and the Reserve Bank of India (RBI).

Limitations of UPI:

Limited Offline Use: Most UPI transactions require an internet connection, which makes it hard to use in rural areas with poor connectivity.
Global Challenges: While UPI is expanding to other countries, its global usage is still limited by different regulatory systems and technical infrastructure abroad.
Weak Data Privacy Framework: The report highlights the need for better laws to protect users’ financial data from misuse.
Dispute Resolution Issues: Inconsistent grievance redressal systems across banks and apps lower user trust when payments fail or fraud occurs.
Digital Divide: UPI heavily depends on smartphones, which makes it difficult for senior citizens, people with disabilities, and those unfamiliar with technology to use it effectively.

Way Forward:

Expand Offline Access: Scale up UPI Lite+, USSD, and NFC-based payments to help users in areas with no or low internet access.
Strengthen Global Partnerships: Work with central banks and regulators in other countries to develop common standards for cross-border UPI transactions.
Create Strong Legal Safeguards: Bring in a dedicated Digital Payments Consumer Protection Act to ensure user safety, prevent data misuse, and define rights and remedies clearly.
Make UPI Inclusive: Design special features like voice-command-based payments, simple interfaces in local languages, and accessibility tools for the elderly and digitally less literate.
One-Stop Complaint Portal: Build a central AI-powered grievance redressal system connected to NPCI and RBI to track and resolve UPI complaints efficiently.

Conclusion

UPI has transformed India into a global pioneer in digital public infrastructure, showing how technology can be used for inclusive growth.
However, challenges related to accessibility, legal protection, cross-border reach, and user trust still need to be addressed.
By focusing on offline access, legal reform, global integration, and user-centric design, India can make UPI not just a national success, but a global model for fast, secure, and inclusive payments.

Why in News?

India has become the global leader in real-time digital payments.

In June 2025, India’s Unified Payments Interface (UPI) processed 18.39 billion transactions in a single month.

This achievement is part of a detailed study published in the Fast Payments Report 2025, supported by the International Monetary Fund (IMF) and FIS Global.

About the Fast Payments Report 2025:

This report evaluates the strength and adoption of digital public payment infrastructure in 30 major countries.

It introduces a new metric called the Faster Payment Adoption Score (FPAS) to measure how quickly and widely digital payment systems are being used.

It was prepared through collaboration between the IMF and FIS Global, a global financial technology company.

India’s Global Performance:

India secured the top global rank with a FPAS score of 87.5 percent.

Countries like Brazil, Singapore, the United Kingdom, and the United States ranked below India in digital payment adoption.

UPI has emerged as the world’s most widely used real-time payment system, making digital transactions quick, easy, and affordable for everyone.

India’s success is a result of continuous innovation, government support, public-private collaboration, and user-friendly technology.

Scale and Reach of UPI in India:

UPI handles over 640 million transactions per day.

It connects 491 million individuals, 65 million merchants, and 675 banks.

The system has now been expanded to 7 countries, including France, UAE, and Singapore.

UPI is becoming a model for cross-border payments, especially among BRICS+ countries, where India is pushing for regional integration through UPI.

Key Features of India’s UPI Ecosystem:

Interoperability: A unified platform that works across all banks and apps such as PhonePe, Google Pay, Paytm, and BHIM.

Inclusiveness: Designed for all users, including rural populations, with features like Aadhaar integration, USSD access (works on basic phones), and support for multiple Indian languages.

Built on India Stack: Uses powerful digital tools such as Aadhaar, e-KYC, DigiLocker, and the Account Aggregator system for secure and seamless transactions.

High Security Standards: Real-time fraud detection, data tokenisation, and strict compliance with RBI guidelines.

Strong Public-Private Collaboration: UPI is managed by the National Payments Corporation of India (NPCI) in partnership with fintech startups, banks, and the Reserve Bank of India (RBI).

Limitations of UPI:

Limited Offline Use: Most UPI transactions require an internet connection, which makes it hard to use in rural areas with poor connectivity.

Global Challenges: While UPI is expanding to other countries, its global usage is still limited by different regulatory systems and technical infrastructure abroad.

Weak Data Privacy Framework: The report highlights the need for better laws to protect users’ financial data from misuse.

Dispute Resolution Issues: Inconsistent grievance redressal systems across banks and apps lower user trust when payments fail or fraud occurs.

Digital Divide: UPI heavily depends on smartphones, which makes it difficult for senior citizens, people with disabilities, and those unfamiliar with technology to use it effectively.

Way Forward:

Expand Offline Access: Scale up UPI Lite+, USSD, and NFC-based payments to help users in areas with no or low internet access.

Strengthen Global Partnerships: Work with central banks and regulators in other countries to develop common standards for cross-border UPI transactions.

Create Strong Legal Safeguards: Bring in a dedicated Digital Payments Consumer Protection Act to ensure user safety, prevent data misuse, and define rights and remedies clearly.

Make UPI Inclusive: Design special features like voice-command-based payments, simple interfaces in local languages, and accessibility tools for the elderly and digitally less literate.

One-Stop Complaint Portal: Build a central AI-powered grievance redressal system connected to NPCI and RBI to track and resolve UPI complaints efficiently.

Conclusion

UPI has transformed India into a global pioneer in digital public infrastructure, showing how technology can be used for inclusive growth.

However, challenges related to accessibility, legal protection, cross-border reach, and user trust still need to be addressed.

By focusing on offline access, legal reform, global integration, and user-centric design, India can make UPI not just a national success, but a global model for fast, secure, and inclusive payments.