UPI Hits 85.5% of India's Payment Volume as Debit Cards Collapse 67%

RBI's H2 2025 report shows UPI processed 12,191 crore transactions—77.6 crore daily—now 8x its H1 2021 base. Debit card volumes have cratered 67% since 2021, while RTGS still commands 68.6% of value. UPI QR is now live across eight countries including France, Singapore and UAE, reshaping how retailers architect checkout.

— Source publishedTue, 19 May, 2026, 09:55 IST·First seen Tue, 19 May, 2026, 10:10 IST·Source Business Today · Latest

What happened

RBI's H2 2025 Payment Systems Report shows UPI now drives 85.5% of India's payment volumes with 12,191 crore transactions, while debit card usage fell 67% since

Key facts

  • 85.5% share H2 2025
  • 77.6 crore daily transactions
  • 12,191 crore UPI transactions H2 2025
  • 8x growth since H1 2021
  • debit card volumes down 67%
  • RTGS 68.6% of value
  • UPI live in 8 countries

Why this matters

Hunt for tuck-in targets in UPI orchestration, cross-border UPI acceptance (France/Singapore/UAE corridors), and credit-on-UPI underwriting—while divesting or partnering out debit card processing assets before terminal value erodes further.