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NPCI and UPI | The system moving about 85% of payments in India, and what companies need to know to use it

2026.03.26

Article summary

UPI (Unified Payments Interface) is a real-time payment system that has been operated since 2016 by NPCI (National Payments Corporation of India), a non-profit organization established by the Reserve Bank of India and the Indian Banks' Association. Transactions for calendar 2025 came to about 228.3 billion, worth about 300 trillion rupees, accounting for about 85% of digital payments in India. It is not a company, but it is included in this directory because no one selling goods in India can avoid it as the entry point for payments.

This article is based on what we could verify As of September 19, 2026 This page is compiled from the disclosures and news reports of each company that could be confirmed as of that date. Amounts in the text follow common Indian notation, with ₹1 crore (1 crore = 10 million rupees) written as 10 million rupees, and the yen figures are rough calculations at around 1.7 yen to the rupee. Store counts, funding amounts, and results at Indian companies change over short periods, so please check the latest information in primary sources such as each company's official announcements when making business decisions.

How NPCI and UPI relate

This directory covers companies, but UPI itself is not a company. It is operated by the National Payments Corporation of India (NPCI), a non-profit organization established in 2008 by the Reserve Bank of India (RBI) and the Indian Banks' Association. UPI is the real-time instant transfer and payment system that NPCI developed and runs. It enables instant transfers between bank accounts through a smartphone, and since its launch in 2016 it has become the core of India's digital payment infrastructure.

As of 2025, UPI accounts for about 85% of digital payments in India. The IMF calls it the world's largest real-time payment system, and UPI is said to process roughly half of all digital payment transactions worldwide. Annual transactions exceed 228.3 billion, equivalent to about 3.5 trillion dollars in value.

Latest UPI figures for 2025

Annual transaction results

For calendar 2025, UPI transactions numbered about 228.3 billion, worth about 300 trillion rupees (about 3.5 trillion dollars). The daily average was about 626 million. Year on year, the number of transactions rose 29% and the value rose 20%.

Monthly record high

December 2025 set a record high of 21.63 billion transactions in the month, with value reaching about 27.97 trillion rupees. In May of the same year, monthly transaction value passed 25 trillion rupees (about 292.6 billion dollars) for the first time.

Growth in merchant payments

P2M (person to merchant) payments in the first half of 2025 came to about 67 billion transactions, up 37% year on year. As of FY2024-25, about 570 million QR codes were in place at about 65 million merchants. The near-zero cost of adoption for merchants is what has driven that number.

How UPI works and what characterizes it

The basic mechanism

UPI assigns each user a unique VPA (Virtual Payment Address, for example username@bankname). Money can be sent instantly without exchanging bank account numbers, and the system runs 24 hours a day, 365 days a year. There is no fee on person-to-person transfers or on small merchant payments.

Major apps that support UPI

Google Pay: One of the UPI payment apps with the most users in India
PhonePe: Owned by Walmart. Competes for the top share of UPI transactions
Paytm: A pioneer of QR payments. Strong in its merchant network
BHIM: The official NPCI app. Characterized by a simple design

UPI outside India

UPI can also be used in several countries including Singapore, the UAE, France, Sri Lanka and Nepal. The Indian government is pushing international standardization and is working to widen the range where it can be used, both at the destinations Indians travel to and for travelers visiting India.

Why Japanese companies should make use of UPI

If you have a business that takes payment from consumers in India, whether or not you support UPI changes how much you leave on the table.

The mainstream of cashless payment: Not supporting UPI, which accounts for 84% of digital payments in India, means missing most consumers
Handling small payments: The average transaction is about 1,293 rupees (about 2,000 yen). UPI has taken hold in everyday small payments
Ease of merchant registration: UPI payment can be introduced simply by rolling out QR codes. The upfront investment is small
Use of data: Consumer behavior can be analyzed through UPI payment data

Conclusion

UPI is not a company but a payment system operated by a nonprofit organization, the NPCI. Keeping that in mind makes it easier to read what India's retail, restaurant and e-commerce companies use for payment and where the fees are borne. It is the premise for looking at the other companies in this list.