The Unified Payments Interface (UPI) has achieved a new milestone, surpassing 500 million consumers and 65 million merchants across India. The platform, developed by the National Payments Corporation of India (NPCI), has expanded its reach to nearly 99 percent of the country’s pin codes, underlining its deep penetration into both urban and rural markets.

According to a report by NPCI and the Boston Consulting Group (BCG) launched during the Global Fintech Fest 2025, UPI has evolved from being a digital payments mechanism into a key enabler of financial inclusion and small business growth. It has facilitated the formalisation of a large segment of the economy by giving micro, small and medium enterprises (MSMEs) access to secure, instant digital transactions and easier credit.

The report notes that in regions with high UPI adoption, consumer durable loans grew tenfold and personal loans expanded by 4.4 times between FY23 and FY25. On the business side, lending to enterprises in high-UPI penetration areas increased by more than four times compared to lower adoption zones.

Merchants have also reported productivity improvements, supported by digital tools such as the UPI Soundbox, which streamlines transaction verification. Meanwhile, UPI’s innovation drive continues through products like UPI LiteX for offline transactions, tap-and-pay features, credit card integration, and UPI Autopay. Together, these developments highlight UPI’s growing contribution to India’s financial ecosystem and its role in advancing digital inclusion for individuals and MSMEs alike.