RBI regulatory updates for digital payments

The proposed RBI ‘Kill Switch’ would enable customers to instantly block outgoing digital payments during suspected fraud, cyberattacks , device theft or unauthorised access. The proposed Payments Switching Service (PaSS) could enable bank account portability, reducing friction around linked mandates and recurring payments when customers change banks. An interoperable recurring mandate dashboard would provide a single interface to view and manage mandates across UPI, cards and other payment instruments. The RBI is evaluating e-cheques, while UPI-enabled cash withdrawals through micro-ATMs could strengthen last-mile access and financial inclusion. The Integrated Ombudsman Scheme 2026 strengthens grievance redressal, while UPI Circle enables controlled delegated payments for trusted secondary users.

Emerging payment technology and AI trends in India

Project Agorá explores tokenised cross-border payments in India using wholesale central bank money, with potential benefits for settlement speed, liquidity, transparency and programmability. Project Rialto explores instant cross-border payments in India by linking domestic instant payment systems with automated FX conversion and tokenised wholesale central bank money. Agentic AI in payments could enable payment systems to initiate and manage transactions within predefined controls across commerce, bill payments, procurement and treasury. Cross-border UPI expansion is extending India’s instant payments model to travellers, merchants, and remittance users, enhancing the global relevance of its digital payment infrastructure. PI-enabled IoT payments are extending transactions to connected vehicles, wearables, appliances and EV charging, creating new opportunities for embedded finance. AI-powered fraud detection is enabling real-time monitoring, behavioural analysis and proactive risk mitigation, strengthening trust in digital payments. The NPCI’s sovereign AI infrastructure initiative with NVIDIA and UPI HELP indicates that AI is becoming a core component of payment infrastructure in India, supporting security, assistance, and grievance resolution.

India Payments Trends Report 2026

Skip to content
Skip to navigation

The India Payments Trends 2026 report shows how quickly the country’s digital payments landscape is changing, driven by new technologies, policies, and innovation.

India is now seen as a global leader in large-scale payments, with robust infrastructure, growing adoption of digital options, and advanced regulations. The payment system covers UPI, cards, wallets, FASTag, Bharat Connect, and other new digital payment methods. As digital payments become a regular part of business, it is important for companies, banks, and other groups to keep up with these changes.

Key highlights

India’s payment infrastructure continued to deepen, with the RBI-DPI reaching 516.8 by September 2025, signalling stronger payment performance and enabling infrastructure.

PoS terminals increased from 45.2 lakh in May 2021 to 115.3 lakh in May 2026. QR acceptance also expanded as a cost-effective option for merchants.

Bharat QR and UPI QR deployments grew to 7,854 lakh in May 2026 from 1,922 lakh in May 2022, with UPI QR accounting for most of the new adoption.

Digital payment transaction volume grew at a 37.9% CAGR from FY2019-20 to FY2024-25, reflecting sustained growth in low-value, high-frequency transactions.

UPI remained the primary driver of digital payments in India, reaching 24,162 crore transactions and INR 314.23 lakh crore in value in FY2025-26, though growth moderated at scale.

RuPay usage across PoS and e-commerce reached 3,289.41 crore transactions in FY2025-26, with e-commerce showing stronger growth.

PhonePe and Google Pay accounted for 79.5% of UPI transaction volume and 82.7% of value in May 2026, though market concentration among leading apps decreased.

Debit card growth slowed as UPI replaced many retail use cases. Credit cards continued to grow, supported by rewards, EMI financing, digital commerce, and co-branded offerings.

Wallets remained relevant despite UPI’s dominance, especially for recurring payments, transit, gaming, subscriptions, and merchant loyalty programs.

10.

Bharat Connect and FASTag continued to support specialised payment use cases. Fraud incidence stabilised, and losses remained a negligible portion of total payment activity.

Digital payments and UPI trends in India

The Indian payments ecosystem is evolving from basic digitisation to more integrated and intelligent payment solutions. UPI and digital payments dominate daily transactions, while QR codes, cards, wallets, and specialised rails are adapting to specific needs. The focus is shifting toward greater interoperability, convenience, and integration throughout the payment process.

The proposed RBI ‘Kill Switch’ would enable customers to instantly block outgoing digital payments during suspected fraud, cyberattacks, device theft or unauthorised access.
The proposed Payments Switching Service (PaSS) could enable bank account portability, reducing friction around linked mandates and recurring payments when customers change banks.
An interoperable recurring mandate dashboard would provide a single interface to view and manage mandates across UPI, cards and other payment instruments.
The RBI is evaluating e-cheques, while UPI-enabled cash withdrawals through micro-ATMs could strengthen last-mile access and financial inclusion.
The Integrated Ombudsman Scheme 2026 strengthens grievance redressal, while UPI Circle enables controlled delegated payments for trusted secondary users.

Project Agorá explores tokenised cross-border payments in India using wholesale central bank money, with potential benefits for settlement speed, liquidity, transparency and programmability.
Project Rialto explores instant cross-border payments in India by linking domestic instant payment systems with automated FX conversion and tokenised wholesale central bank money.
Agentic AI in payments could enable payment systems to initiate and manage transactions within predefined controls across commerce, bill payments, procurement and treasury.
Cross-border UPI expansion is extending India’s instant payments model to travellers, merchants, and remittance users, enhancing the global relevance of its digital payment infrastructure. PI-enabled IoT payments are extending transactions to connected vehicles, wearables, appliances and EV charging, creating new opportunities for embedded finance.
AI-powered fraud detection is enabling real-time monitoring, behavioural analysis and proactive risk mitigation, strengthening trust in digital payments.
The NPCI’s sovereign AI infrastructure initiative with NVIDIA and UPI HELP indicates that AI is becoming a core component of payment infrastructure in India, supporting security, assistance, and grievance resolution.

Market updates and major deals

Market updates	Major deals
Digital payments accounted for 99.8% of India’s total transaction volume in CY2025, highlighting the scale of the shift towards digital modes.	Global Payments–Worldpay: USD 24.25 billion acquisition, strengthening merchant acquiring, processing and omnichannel capabilities.
UPI captured 85.5% of total transaction volume in H2 2025, reinforcing its position as the preferred rail for everyday payments.	Mastercard–BVNK: Acquisition announced for up to USD 1.8 billion, expanding blockchain-based settlement capabilities.
IoT-powered UPI payments expanded transaction capabilities to connected devices, while UPI Reserve Pay introduced scheduled and future-dated payment capabilities.	FIS–Global Payments Issuer Solutions: USD 13.5 billion acquisition, strengthening card issuing, fraud management and payments technology.
RTGS retained its dominance in high-value payments, accounting for 68.6% of total transaction value in H2 2025.	Nuvei–Payoneer: USD 2.75 billion acquisition announced to strengthen cross-border and multi-currency payments.
UPI HELP, Banking Connect and the Payments Regulatory Board marked further developments in intelligent support, interoperability and payments governance.	Juspay: USD 50 million Series D follow-on funding at a valuation of around USD 1.2 billion, highlighting continued demand for payment orchestration and merchant infrastructure.