2025, Vol. 8, Issue 2

author(s)
Aashima Jain

abstract
The Indian digital payments ecosystem has transformed significantly over the past decade, driven by government initiatives, smartphone adoption, and internet penetration. This study analyzes growth trends in digital payments in India from FY 2017-18 to FY 2024-25, using data from the Press Information Bureau, the Reserve Bank of India, and the National Payments Corporation of India. The findings reveal a sharp rise in transaction volume and value, with overall payment volume growing at a CAGR of 44.5% and value at 12.1%. This disparity highlights a shift toward smaller, more frequent transactions. The Unified Payments Interface (UPI) emerged as the key driver, with transaction volume rising at a CAGR of 129.5% and its share of total digital payments increasing from 4.44% to 79.87%. The paper also identifies challenges in digital literacy and cybersecurity, while highlighting future opportunities such as global UPI expansion and offline or voice-based payment solutions.