Explained: How UPI Becomes the World’s First Real-Time Payment System

Introduction

In a landmark achievement of digital payment, India’s Unified Payments Interface (UPI) has overtaken Visa to become the world’s largest real-time payment system. With over 650 million daily transactions done by UPIs, UPI is now a symbol of India’s digital leadership, transforming how people pay and transact, and UPI has become the world’s first real-time payment system by crossing Visa’s transaction volume. 

Source: myGov

This largest achievement, the Indian digital payment, has succeeded; it is the unique and smartest revolution, which is praised by Amitabh Kant, India’s G20 Sherpa and former NITI Aayog CEO, and marks a pivotal shift in the global financial landscape, where it shows an Atmanirbhar Bharat, which aims to make the country and its citizens independent and self-reliant in all senses that are economy, infrastructure, system, vibrant demography, and demand. It shows a homegrown platform has outpaced one of the biggest international payment networks.

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What are the differences between UPI and Visa?

UPI vs. Visa

How UPI Becomes the World’s First Real-Time Payment System 

• Massive Adoption: Over 650 million transactions daily occur through UPIs, which has surpassed Visa’s global transaction count.
  

• Exponential Growth: From its 2016 launch, UPI grew to dominate India's digital payments in under 9 years, which shows its exponential growth and increase in the growth of digital payments as compared to other methods of payment.
  

• Global Presence: UPI is now accepted in seven countries, including France, the UAE, Sri Lanka, and Singapore.
  

• Trusted Backbone: Operated by the National Payments Corporation of India (NPCI), it supports banks, apps, and merchant payments on a unified platform.
  

• IMF Recognition: The International Monetary Fund (IMF) noted UPI as a benchmark for real-time, low-cost, interoperable payment systems worldwide.

How did UPI become the world's first real-time payment system?

Several factors have contributed to UPI’s rapid rise:

1. Interoperability

• Users can send/receive money across different apps and banks.
  

• Seamless experience for merchants and customers alike.
  

2. Cost Efficiency

• No transaction fees for customers.
  

• Affordable for small businesses and street vendors.
  

3. Government Push

• Initiatives like Digital India, Jan Dhan-Aadhaar-Mobile (JAM) Trinity, and BHIM App accelerated adoption.
  

• Mandates encouraging digital transactions in government services.
  

4. Real-Time Settlements

• Payments are processed instantly with confirmation.
  

• Beneficial for both peer-to-peer and business transactions.
  

5. Pandemic Boost

• COVID-19 spurred a rise in contactless digital payments, further deepening UPI usage.
  

What It Means for India and the World

• Global Leadership: India is setting the benchmark for real-time payments infrastructure.
  

• Financial Inclusion: UPI’s low-cost model is empowering rural and unbanked populations.
  

• Blueprint for the Future: Other nations may replicate UPI’s model to reform their digital payment ecosystems.
  

Expert View

Amitabh Kant called this milestone “phenomenal” on social media, emphasising that India's success in building such a vast infrastructure within nine years is not only impressive but revolutionary. He underscored how India’s digital public infrastructure (DPI) is now recognised globally.

UPI surpasses Visa to become the world's leading real-time payment system, processing over 650 million transactions daily.

Achieving this in just 9 years highlights its unmatched scale and momentum.

From India to the world, UPI is leading the digital payment revolution! https://t.co/Gsf6iVyr6m

— Amitabh Kant (@amitabhk87) July 13, 2025

Conclusion

UPI has become more than just a payment system—it is the backbone of India’s digital economy. Surpassing Visa is not just a symbolic win; it signifies a new era where emerging economies can lead innovation in fintech. With the world watching, UPI’s journey is far from over—it may well shape the future of money itself.