India Tops Global Digital Payment Speed Charts

India has emerged as the global leader in faster payments, thanks to the rapid adoption of the Unified Payments Interface (UPI). The International Monetary Fund (IMF) highlights a significant shift away from cash and card usage in its latest Fintech Note.

The Rise of UPI

Since its launch in 2016, UPI, developed by the National Payments Corporation of India (NPCI), has become the world's largest retail fast payment system by volume, processing over 18 billion transactions each month.

IMF's Observations on Digital Payments

The IMF notes a sharp increase in UPI usage alongside a decline in cash usage indicators. "India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the report states.

Interoperability: Key to Success

The open and interoperable nature of UPI is credited for its widespread adoption, allowing seamless transactions across different providers and encouraging a shift towards digital payments.

Challenges and Recommendations

While tracking cash usage poses challenges, the IMF suggests using ATM withdrawals as a proxy. The report advises policymakers to monitor the ecosystem to maintain competitiveness and interoperability as UPI continues to grow.