Cambridge Professor Explores India’s UPI Success
During his visit to India for the NXT event at Bharat Mandapam, Professor Carlos Montes, head of the Innovation Hub for Prosperity at Cambridge University Business School, received an in-depth briefing on the Unified Payments Interface (UPI). The presentation highlighted UPI’s impressive growth and its potential as a model for digital payment systems worldwide.
UPI’s Remarkable Growth and Achievements
On January 2025, UPI transactions reached a staggering 16.99 billion, with a total value exceeding ₹23.48 lakh crore, marking a record high for any month. This surge in usage underscores UPI’s pivotal role in India’s digital payment landscape, which has seen significant expansion in the fiscal year 2023-24. UPI now accounts for 80% of retail payments in India, with over 131 billion transactions and a total value surpassing ₹200 lakh crore.
Professor Montes expressed his admiration for the UPI system, noting that its user-friendly design and continuous innovation have contributed to its widespread adoption. He emphasized that UPI serves as a valuable case study for other countries looking to implement similar systems, showcasing how effective technology can enhance financial accessibility for citizens.
Global Expansion of UPI
Shri Sudhir Shyam, Economic Adviser at the Department of Financial Services, highlighted UPI’s growing international presence. Currently operational in over seven countries, including the UAE, Singapore, and France, UPI facilitates seamless transactions for Indians abroad. This expansion not only strengthens remittance flows but also enhances India’s position in the global financial arena.
Shri Jignesh Solanki, Director at the DFS, noted that UPI’s ease of use and low transaction costs have significantly contributed to its dominance in the online payment sector. The government is committed to fostering innovations that will further extend UPI’s reach, particularly in underserved areas.
Future Prospects and Innovations
As UPI continues to evolve, it is poised to play a crucial role in enhancing financial inclusion across India and beyond. With over 80 UPI apps and 641 banks currently integrated into the system, the platform is well-equipped to handle the increasing volume of transactions. In January 2025, person-to-merchant (P2M) transactions accounted for 62.35% of the overall UPI volume, indicating a strong preference for low-value payments among users.
The session concluded with a demonstration of UPI’s functionality, showcasing its user-friendly interface and efficiency. As the digital payments landscape continues to transform, UPI stands as a testament to India’s innovative approach to financial technology, setting a benchmark for other nations to follow.
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