UPI Dominates Digital Payment Landscape, Surpassing Cash Transactions

A government report highlights UPI's dominance as the preferred mode of digital transactions over cash. To bolster RuPay debit card usage in rural and semi-urban regions, the report suggests targeted interventions, including merchant enablement, promotion of low-value transactions, and investments in connectivity and digital literacy.

The Unified Payments Interface (UPI) has surged ahead of cash as the most popular transaction method, underscoring the country's shift towards digital payments. A recent report by the Department of Financial Services, Ministry of Finance, outlines the socio-economic impacts of digital payment schemes and suggests further steps to promote RuPay debit card usage.

Based on a comprehensive survey of over 10,000 respondents, the report highlights UPI's ease of use and instant transfer capabilities as key drivers of its popularity. Currently, UPI is utilized by 57% of surveyed users, overtaking cash, which is used in 38% of transactions, marking a significant behavioural change among consumers.

To further enhance digital payment adoption, especially in rural and semi-urban areas, the report recommends focused initiatives such as merchant enablement programs, promoting low-value UPI transactions, and investing in digital infrastructure. These steps aim at increasing digital literacy and reducing fraud risk, thereby strengthening India's digital economy.

(With inputs from agencies.)