UPI’s transaction volume growth has more than halved — from 82% in FY2023-24 to 42% in FY2024-25 — and is projected to slow further to 25% this fiscal year, prompting India’s parliamentary finance committee to question whether the world’s largest real-time payments network should continue to depend on government subsidies to stay solvent.
The slowdown in UPI growth feels like a natural stage after years of rapid adoption. Many urban users already rely on it for daily payments, so the next phase depends on reaching places where digital habits are still forming. That is harder work!