Mixed Cues: UPI Dominates Volume, RTGS Value; Impact on Fintech &

UPI processed 85% of India's payment volumes but only 9.5% of the value in late 2025, while RTGS dominated with 68.6% of the value. This indicates UPI's strength in small, frequent transactions and RTGS's role in large-value transfers.

This data reveals the distinct roles of different digital payment systems in India. For financial service providers, it means a focus on high-volume, low-value transactions for UPI-centric platforms and high-value, low-volume transactions for traditional banking channels like RTGS. It also highlights the decline of debit card usage for everyday payments.

Fintech companies heavily reliant on UPI transaction fees (e.g., PAYTM) might see high volume but lower revenue per transaction. Traditional banks (e.g., HDFCBANK, ICICIBANK) continue to benefit from RTGS for corporate and large-value transfers. The decline in debit card usage could negatively impact card network providers and banks' interchange fee revenues.

Traders should monitor the evolution of UPI's monetization strategies and any changes in transaction limits or fee structures. Also, observe how banks adapt their digital offerings to cater to both high-volume and high-value segments, and the impact on their fee income.

• •UPI processes 85% of India's payment volumes.
• •UPI processes just 9.5% of payment value.
• •RTGS dominates payment value at 68.6%.
• •Digital payments saw explosive growth from 2021 to 2025.
• •UPI's rise led to a sharp decline in debit card usage for everyday retail payments.