India's payment ecosystem has entered a new phase of digital transformation. Nearly all retail transactions - 99.8 per cent are now digital, with paper-based instruments such as cheques almost disappearing from everyday use. This shift has been fuelled by a blend of policy support, fintech innovation and stronger digital infrastructure.

Internet access has grown rapidly, rising from 60.7 per cent in March 2021 to 70.9 per cent in June 2025, alongside a sharp increase in smartphone adoption. These trends have enabled millions to join the formal financial system and the momentum is expected to continue, with connectivity projected to reach around 85 per cent by 2028, according to a report by CareEdge Group.

UPI: The backbone of the digital economy

The Unified Payments Interface (UPI) has

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