Date of Publication (ONLINE) :-05-08-2026
Online Publication Certificate No. :- IJCBM/2302
DOI :-10.71037/ijcbm.v2i3.02

cite this article:
Dosaj Jahnvi, “Growth of Digital Payments in India: A Study of UPI Adoption and Its Impact on the Banking Ecosystem An Empirical Analysis Using Secondary Data (2018–2025)” IJCBM, Vol-2, Issue-3, July-Sept., 2026, Page No. :-11-34. URL : https://ijcbm.gyanvividha.com/wp-content/uploads/2026/08/Jahnvi-Dosaj-IJCBM-vol-2-issue-3-July-Sept.-2026-pp-11-34.pdf

Abstract : Unified Payments Interface (UPI) has transformed the digital payment landscape in India with its features of real time, interoperability, and ease of fast retail payment transactions. This study analyzes the growth path of UPI and the impact on the digital payment system and commercial banking system of India with the secondary data from FY2018–19 to FY2024–25. Data sources are authentic sources like the National Payments Corporation of India (NPCI), Reserve Bank of India (RBI), Ministry of Finance, government publications etc. Descriptive statistics and year-on-year growth analysis, simple linear regression, compound annual growth rate, Pearson’s correlation is applied to study the growth of UPI and analyze the performance of UPI in comparison to other major payment systems like RTGS, NEFT and Credit Cards. The findings showed that the volume of transactions on UPI jumped significantly from 5.39 billion transactions during FY2018-19 to 185.87 billion transactions during FY2024-25, while transaction value has grown from ₹8.78 lakh crore to ₹260.58 lakh crore during the same period. The CAGR shows that UPI had the biggest growth among the selected payment systems, with the number of transactions increasing by 80.73 per cent and transaction value by 75.53 per cent. The correlation analysis between transaction volume and transaction value shows an extremely positive correlation (r=0.996), and the regression analysis confirms that there is a statistically significant positive trend over time in the number of transactions on UPI (R² = 0.911). The comparative analysis also reveals that UPI is accounting for about 94-95 per cent of the combined transaction count of the four payment systems analyzed (UPI, RTGS, NEFT and Credit Cards) but just 9-10 per cent of the combined transaction value, further indicating that UPI is the leading platform for high-frequency, low-value retail transactions, while RTGS and NEFT remain the key enablers for higher-value transactions. In conclusion, the study reveals that UPI has revolutionized the digital payment landscape in India, driving the adoption of digital payment and reshaping the traditional payment systems. The results are significant for policy makers, commercial banks, payment service providers, and fintech companies in terms of enhancing the payment infrastructure, fostering innovation, and sustaining the future of India’s digital payment ecosystem.

Keywords : UPI, Digital Payments, Financial Inclusion, Banking Ecosystem, India, Real-Time Payment Systems, Financial Technology (FinTech), Payment System Regulation.

Publication Details:

Journal : Indian Journal of Commerce, Business & Management (IJCBM)

ISSN : 3108-057X (Online)

3108-1282 (Print)

Published In : Volume-2 | Issue-3, July-Sept., 2026.

Page Number(s) : 11-34

Publisher Name :

Mrs Anubha Chaudhary | https://ijcbm.gyanvividha.com | E-ISSN 3108-057X | P-ISSN 3108-1282