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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68131
Volume:
10 |
10 |
Oct 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Assistant Professor,Department of Economics
National College of arts and science puliyavu
PG Scholar,Department of Commerce
National College of arts and science puliyavu
PG Scholar,Department of Commerce
National College of arts and science puliyavu
PG Scholar,Department of Commerce
National College of arts and science puliyavu
The Unified Payments Interface (UPI) has moved from the margins to the centre of India’s retail payment system within a decade. This paper uses official annual data for 2016-17 to 2025-26 to study how UPI has grown in transaction volume, value and bank participation, and what challenges it faces. Volume rose from 1.78 crore to 24,162 crore transactions and value from ₹0.07 to ₹314 lakh crore. Growth has slowed every year since 2021-22 (volume growth fell from 106% to 30%), which points to a shift from rapid adoption to maturity. The average value per transaction has fallen about 29% from its 2020-21 peak to roughly ₹1,300, showing that UPI is now used mainly for small everyday payments. The main challenges are fraud and social engineering, outages, dependence on a few apps, an unsettled funding model, and gaps in literacy and grievance redressal. The paper ends with suggestions for secure and inclusive growth.
KEYWORDS
UPI has grown on an extraordinary scale: volume from 1.78 crore to 24,162 crore transactions, value from ₹0.07 to ₹314 lakh crore, and banks from 44 to 703. Growth rates have fallen steadily since 2021-22 while absolute additions stay large, which indicates a maturing system. The falling average value per transaction shows that UPI has become part of routine small-value commerce. The challenges that could limit future growth are fraud and social engineering, literacy and access gaps, technical reliability, concentration of providers, an unsettled business model and weak grievance redressal. Meeting them is essential to turn scale into trust.
Alonso, C., Bhojwani, T., Hanedar, E., Prihardini, D., Uña, G., & Zhabska, K. (2023). Stacking up the benefits: Lessons from India’s digital journey (IMF Working Paper No. 23/78). International Monetary Fund. https://doi.org/10.5089/9798400240416.001 BOOM. (2026). UPI fraud cases and losses rise over five years; Finance Ministry tells Lok Sabha. https://www.boomlive.in/web-stories/india/upi-fraud-cases-and-losses-rise-over-five-years-finance-ministry-tells-lok-sabha-2755 Business Standard. (2025, June 26). 1 in 5 UPI users faced fraud; 51% victims didn’t report, reveals survey. https://www.business-standard.com/finance/news/upi-transaction-fraud-india-survey-one-in-five-users-hit-localcircles-125062601141_1.html Business Today. (2024, December 31). NPCI extends 30% UPI market share cap deadline on 3rd party apps to December 2026. https://www.businesstoday.in/tech-today/news/story/npci-extends-30-upi-market-share-cap-deadline-on-3rd-party-apps-to-december-2026-459171-2024-12-31 Chodorow-Reich, G., Gopinath, G., Mishra, P., & Narayanan, A. (2020). Cash and the economy: Evidence from India’s demonetization. The Quarterly Journal of Economics, 135(1), 57–103. Crouzet, N., Gupta, A., & Mezzanotti, F. (2023). Shocks and technology adoption: Evidence from electronic payment systems. Journal of Political Economy, 131(11), 3003–3065. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340.
Publication Date
11/5/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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