UPI and Economic Transformation of Payment Systems in India

India’s digital payment landscape has undergone a profound transformation with the emergence of the Unified Payments Interface (UPI) as a core digital public infrastructure. This paper examines the growth and economic significance of UPI within the context of India’s evolving payment systems. Using secondary data on transaction volume, value, institutional participation, and regional distribution, the study highlights UPI’s role in enhancing payment efficiency, reducing transaction costs, and promoting financial inclusion. The findings reveal sustained high growth, widespread adoption across states, and strong participation by banks and fintech platforms. The paper concludes that UPI has become a key driver of India’s digital and economic integration.