Latest News- Unified Payments Interface (UPI) Market in India: Money transfers is expected to lead the Application segment during 2025-2029

The Unified Payments Interface (UPI) Market in India is being driven by Instant and smooth money transfer process

The Unified Payments Interface (UPI) Market in India is expected to grow at a CAGR of 271.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 4317815.4 million. In the current business landscape, the shift towards mobile commerce is significant, with online shopping transactions increasingly favoring mobile apps over websites. This trend is driven by the widespread adoption of smart devices and the convenience they offer. In India, where digital payments are gaining traction, particularly during the pandemic, mobile-based Unified Payments Interface (UPI) solutions are witnessing accelerated growth. Notable players in this space include Alphabet Inc. with GooglePay, One97 Communications Ltd. with PayTM, and Walmart Inc. with PhonePe, providing users the flexibility to make payments for both online and offline purchases via their mobile apps. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Application
  • Money transfers
  • Bill payments
  • Point of sale
  • Others
• Type
  • P2P
  • P2M
• Technology
  • UPI 1.0
  • UPI 2.0
  • UPI lite
  • UPI for feature phones
  • Cross-border UPI
• Geography
  • India

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Instant and smooth money transfer process
• Rising number of online transactions
• Rewards and cashback offered by companies for making payments via UPI

However, the market also witnesses some limitations, which are as follows:

• UPI payment frauds
• Lack of awareness of online payment
• Slow internet speed in rural areas

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Market Scope in Unified Payments Interface (UPI) Market in India Research Report

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Research Analysis Overview

The Unified Payments Interface (UPI) market in India is witnessing significant growth, integrating advanced technologies such as biometric authentication, artificial intelligence (AI), and machine learning (ML). Blockchain technology ensures secure payment tokenization and data encryption. Two-factor authentication (2FA) and multi-factor authentication (MFA) enhance security. Payment routing and orchestration optimize transactions, offering real-time settlement and instant payments. Open banking, cloud computing, big data, and data analytics enable customer segmentation, targeted marketing, and personalized experiences. Financial literacy programs and digital financial inclusion initiatives expand access to mobile money, digital wallets, payment card networks, processors, gateways, and MPOS.

Market Research Overview

The Unified Payments Interface (UPI) market in India falls under the broader category of mobile payments and digital payments. UPI enables real-time, peer-to-peer transactions between bank accounts using a virtual address called a UPI ID. This innovative system facilitates financial inclusion by allowing even those without smartphones to make transactions using feature phones with the help of a UPI QR code. Merchants too can leverage UPI for business transactions, making it a versatile solution for various payment needs. This market segment is a significant contributor to the global IT software industry, which includes companies developing and producing application software, systems software, and database management software. UPI's real-time capabilities and ease of use position it as a game-changer in the digital payments landscape.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/