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  • Top 12 Best Online Payment Gateways in India 2025

    At present, the world has experienced huge growth in online payments, and with the Covid-19 presence, people preferred to use online payment methods for almost everything as it is safe and secure. More and more people are opting for a cashless way to transfer money. Here, comes the work of the payment gateway. A payment gateway is basically a merchant service that connects the users’ bank accounts with the platform where the users need to transfer their money. A bank may provide a payment gateway to its customers, there is also a specialized financial service provider such as a payment service provider which provides it as a separate service.

    Whether you are a small business or you have an established E-commerce business, good payment service is an essential factor for it. An online payment gateway is a secure and convenient way for a website or online business to accept payments from customers. When a customer makes a purchase on an e-commerce website, they enter their payment information, which is then processed by the payment gateway. The payment gateway verifies the information, checks to see if the customer has the funds available, and then transfers the funds from the customer’s account to the business’s account.

    A payment gateway platform gives authority to the users to conduct an online transaction through various payment modes such as net banking, credit card, debit card, UPI, and other online payment apps. It is a third-party platform that provides the ability for the user to securely transfer their money to the merchant’s payment portal. In this era of the digital world, E-commerce is leading the market. As times are changing fast online businesses are also moving. So, it is important to know about the payment gateways in India.

    In order to use an online payment gateway, you will need to sign up for an account and integrate the payment gateway into your website or online store. This typically involves adding a few lines of code to your website and may also require you to obtain a merchant account.

    There are many different online payment gateways available, each with its own set of features and fees. In this article, we will talk about the top payment gateways in India that allow customers to make payments online. So, let’s take a look at them.

    S.No. Payment Gateway Key Features Transaction Fees
    1 Razorpay Easy integration, supports multiple payment modes, instant settlements 2% per transaction
    2 Instamojo No setup fee, user-friendly dashboard, quick payouts 2% + ₹3 per transaction
    3 Paytm Large user base, supports UPI/wallet/cards, instant refunds 1.99% + taxes
    4 CCAvenue Multiple currency support, advanced fraud detection, recurring billing 2% per transaction
    5 Payflow Easy integration for businesses, seamless checkout experience Varies by plan
    6 Cashfree Instant settlements, API friendly, supports international payments 1.75% onwards
    7 BillDesk Reliable for utility and recurring payments, strong security 1.5% onwards
    8 Atom Supports 100+ payment options, secure and scalable 1.99% onwards
    9 HDFC Bank-backed, secure transactions, easy reconciliation 2% per transaction
    10 PayKun No setup or maintenance fee, multiple payment modes 1.75% per transaction
    11 PayU Easy checkout, supports international cards, fast settlements 2% per transaction
    12 MobiKwik Popular wallet-based gateway, supports UPI, cards, EMI, and Buy Now Pay Later options 1.75% onwards

    Razorpay

    Mobile Applications Google Play Store
    Accepted Payment Methods Domestic and International Credit & Debit cards, EMIs ( Credit/Debit Cards & Cardless), PayLater, Netbanking from 58 banks, UPI and 8 mobile wallets
    Razorpay - best payment gateway in India
    Razorpay – best payment gateway in India

    Razorpay is one of the best payment gateways in India for your business. It was started in 2014. Many entrepreneurs who use Razorpay for their business, have seen some increase in their conversion rate. Razorpay has helped businesses to solve the problem of digital payments. It is due to their smooth user experience. Also, the refund process is easy and automated. If your customer applies for a refund, Razorpay will automatically get the refund, if you set it to, without any extra widget or code. You can use Razorpay Subscriptions to execute the automated recurring transactions on various payment modes, through a platform that’s built for automation.

    Razorpay Features

    • You can improve your business sales as Razorpay provides cashback and discounts to your customers
    • Payment modes include credit cards, debit cards, net banking, payments through UPI, and popular wallets.
    • Razorpay allows you to accept international payments from over 100 countries.
    • Manage your marketplace, automate bank transfers, collect recurring payments, share invoices, and avail working capital loans.

    Instamojo

    Mobile Applications Google Play
    Accepted Payment Methods 170+ payment methods including RTGS/Bank Transfer/NEFT/EMI
    Instamojo - best payment gateway in India
    Instamojo – best payment gateway in India

    Instamojo is one of the top-rated payment gateways in India. It allows businesses to create a business account instantly and the account can also be activated within a few minutes to collect online payments. This is a Bangalore-based company and the target of Instamojo is selling digital goods and collecting payments online. You can enroll yourself at Instamojo with a bank account and start your online selling business. You can also collect payments for physical goods and workshops or events.

    Instamojo Features

    • To set up the payment gateway, no extra payment is needed.
    • Different types of payment methods are available.
    • Special care is being taken for the security of the server.
    • Businesses can create discount codes for their products.

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    Reviews and features of digital payment apps founded in India, Instamojo pricing, Razorpay pricing, integrations, and solutions for micro and macro enterprises.
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    Paytm

    Mobile Applications Google Play and App Store
    Accepted Payment Methods UPI, Debit Card, Credit Card, NetBanking, AMEX/International
    Paytm - payment gateway provider in India
    Paytm – payment gateway provider in India

    Paytm has emerged as a leading payment gateway in India due to its online customer base with the very popular Paytm wallet. It supports domestic credit cards like Visa, MasterCard, Maestro, Amex, Discover, and Diners. With Paytm online transactions can be made anytime and from anywhere. It is the best payment gateway solution provider in India which has served some biggest eCommerce companies.

    Some of the most popular companies which use Paytm are Jabong, OLA, Cleartrips, Redbus, GoIbibo, Zomato, etc.

    How to Create Payment Links from the Paytm Business Dashboard

    Paytm Features

    • The latest technologies are used for secure online transactions.
    • It has the feature of saved cards, where a customer doesn’t have to put their card details again and again.
    • Paytm is not only available as a desktop application but also supports smartphones and tablets.

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    CCAvenue

    Mobile Applications Not Available
    Accepted Payment Methods 200+ payment methods including EMI options
    CCAvenue - top payment gateway in India
    CCAvenue – Payment Gateway for Small Business in india

    CCAvenue is an authorized payment gateway provider by Indian Financial Institutions and is known as the most secure and best payment gateway to transact money for online shopping. Customers can make online transactions via Credit Cards, Debit Cards, Net Banking, Digital and Mobile Wallets, Mobile Payment, and Cash Card modes. It offers smooth, fast, and secure transactions to its customers. Currently, CCAvenue powers more than 85% of businesses in India.

    CCAvenue Features

    • CCAvenue provides “Smart Analytics” by which you can see a real-time comprehensive statistical online report and a transparent history of all your transactions.
    • It has a ‘Mobile Checkout Page’ which supports all mobile operating systems.
    • CCAvenue also has CCAvenue In-built Advanced Shopping Cart’, CCAvenue S.N.I.P. ( Social Network In-stream Payments), it is one of India’s first genuine Social Commerce facilities.

    Payflow

    Mobile Applications App Store and Google Play
    Accepted Payment Methods Accept all major debit and credit cards supported by their processor, including Visa, Mastercard®, American Express, Discover, JCB, and Diners Club. Payflow Gateway also supports L2/L3 purchase cards, prepaid cards, foreign currencies, TeleCheck, and ACH.
    Payflow - Best Online Payment Gateways in India
    Payflow Logo

    Payflow is offered by PayPal. It is known for being a secure and open gateway for payments. Payflow accepts all major credit and debit cards. It adds over 173 million customers regularly and supports more than 100 currencies. In India, it is used by Merchants for receiving international payments.

    Payflow Features

    • It accepts and offers different payment methods.
    • The checkout process is customized with the help of APIs.
    • It supports fraud protection services and allows you to install it for an additional fee.

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    Cashfree

    Mobile Applications Google Play Store
    Accepted Payment Methods UPI, EMI, digital wallets, Debit/Credit cards, and 100+ other payment options
    Cashfree - top payment gateway in India.
    Cashfree – top payment gateway in India.

    Cashfree is a low-cost and popular payment gateway in India. Cashfree helps businesses in India to accept payments online from various payment channels. The best thing about Cashfree is that it has direct integration with multiple banks which makes Cashfree a fast and reliable payment gateway. It is the only payment gateway in India that provides a wide range of payment options such as Visa, MasterCard, Maestro, Rupay, and Amex, including 70+ more net banking options. Cashfree also supports UPI, NEFT, IMPS, and PayPal. TDR is the transaction discount rate that every payment gateway charges from the merchants for processing the transactions to their bank account.

    Cashfree Features

    • The setup cost is not needed.
    • Cashfree also supports online wallets like Paytm, PhonePe, and GooglePay.
    • Cashfree is the fastest settlement cycle of 24 hours to 48 hours and also offers popup, iframe and seamless checkout modes

    BillDesk

    Mobile Applications Google Play Store
    Accepted Payment Methods 120+ Credit cards, Debit cards, Banks, Net Banking, Wallets
    BillDesk - online payment gateway provider
    BillDesk – online payment gateway provider

    BillDesk is an Indian online payment gateway company based in Mumbai, India. BillDesk provides bill payment and settlement services to large billers like electricity, water, insurance, and other service providers. BillDesk also provides the ability to customers to decide how and when to make payments. BillDesk is a one-stop solution for customers through which customers can make all their payments at any time and from anywhere.

    BillDesk Features

    • The integration is developer friendly and is quite easy and flexible..
    • BillDesk offers various payment methods.
    • Customers can also receive payment reminders or alerts.

    Atom

    Mobile Applications Google Play Store
    Accepted Payment Methods Visa, Mastercard, Discover and American Express plus Amazon Pay, Apple Pay, Google Pay, PayPal, and Venmo
    Atom Online Payment Gateway
    Atom Online Payment Gateway

    Atom consists of various payment options which accept payment through all major debit cards and credit cards. Atom has completed over 15 million transactions and is used by thousands of merchants across the country. Atom is completely secured as it is backed with PCI DSS version 3.2 and 256-bit encryption which ensures a safe and secure transaction.

    Atom Features

    • Atom provides multiple payment methods.
    • The integration is quite simple and easy.
    • Atom provides invoices after every payment.

    HDFC

    Mobile Applications App Store and Google Play Store
    Accepted Payment Methods All major credit, debit cards and net banking in India, including Visa, MasterCard, Visa Electron, Diners, Rupay, Discover or Maestro
    HDFC Best Online Payment Gateway
    HDFC Best Online Payment Gateway

    HDFC is one of the largest banks in India that offers a payment gateway service for merchants and businesses to accept online payments from their customers. Many organizations like VSNL, Sify, and IRCTC use HDFC. If you want to use HDFC on your website or mobile app, you need to use their EPI payment gateway services. The HDFC Payment Gateway allows merchants to securely accept a wide range of payment options, including credit and debit cards, net banking, and UPI payments. The advantages of the HDFC payment gateway are instant settlement, a 100% chargeback facility, the facility to accept payment in 15 international currencies, easy integration with existing applications, and support for various shopping cart applications.

    HDFC Features

    • The HDFC Payment Gateway supports a wide range of payment options, including Visa, Mastercard, American Express, and Rupay credit and debit cards, as well as net banking and UPI payments.
    • The HDFC Payment Gateway uses 128-bit SSL encryption to secure your transactions and protect your financial information.
    • The HDFC Payment Gateway can be easily integrated with your website or mobile app, allowing you to customize the payment experience for your customers.
    • The HDFC Payment Gateway provides detailed transaction reports and reconciliation tools to help you manage and track your payments.
    • It accepts 15 types of international currencies.
    • It provides 24×7 customer service.

    PayKun

    Mobile Applications Not Available
    Accepted Payment Methods UPI wallet payments, subscription payments, Debit/Credit cards, Master Card, diners club card, net banking, wallets, UPI/BHIM
    PayKun online payment provider
    PayKun online payment provider

    PayKun is an easy solution for online payments for all types of businesses including small businesses, and medium to large. Any kind of merchant including a freelancer, a YouTuber, a blogger, from an eCommerce website or mobile app, an offline and online seller at the shop or showroom, or an individual, every type needs to have an easy hand on the modern technology for the collection of digital payments. It provides free plugins and SDKs readily available on the internet to integrate with all the major platforms of websites and mobile applications.

    PayKun Features

    • Paykun has zero setup fees and zero maintenance fees.
    • It provides different types of payment methods.
    • The server is safe enough to use.

    PayU

    Mobile Applications Google Play and App Store
    Accepted Payment Methods 100 different payment methods are supported, including EMI, UPI, net banking, cards, wallets, Buy Now Pay Later, etc.
    PayU best multi-currency payment gateway
    PayU best multi-currency payment gateway

    PayU (formerly known as PayU Money) is one of the best multi-currency payment gateways to accept online payments. The PayU payment gateway is designed to be secure, reliable, and easy to use for both merchants and customers.

    To use the PayU payment gateway, merchants need to sign up for an account and integrate the payment gateway into their online store or website. This can typically be done through the use of a software development kit (SDK) or by integrating with a payment processor or shopping cart platform. Once the integration is complete, merchants can start accepting payments from customers through the PayU payment gateway.

    You can start accepting payments securely and seamlessly within your iOS, Android, or Windows app, within minutes, with its 100% online hassle-free onboarding process.

    PayU Payment Gateway: What is a payment gateway and how does it work?

    PayU Features

    • PayUMoney supports multi-currency transactions and international credit cards.
    • PayU provides over 100+ payment methods
    • The transaction history is available through PayU.

    Mobikwik

    Mobile Applications Google Play and App Store
    Accepted Payment Methods Supports UPI, MobiKwik wallet, credit/debit cards, net banking, EMI, and Buy Now Pay Later options.
    Mobikwik Best Online Payment Gateway

    MobiKwik (earlier called Zaakpay) is one of the fastest-growing eCommerce payment gateways, helping businesses run smoothly. It focuses on giving users an easy experience by automatically detecting OTP (One Time Password) during payments.

    Some well-known clients include Business World, BlueDart, Uber, and Zomato. Businesses can also integrate this gateway into their website or app with the help of eCommerce development companies.

    Mobikwik Features:

    • Strong PCI DSS security to keep transaction data safe
    • Website analytics to track payment data
    • Supports credit/debit cards, wallets, international cards, UPI, and EMI options

    Conclusion

    The payment gateway has become the most important part of the world of increasing eCommerce businesses. If a business provides a good payment service, it automatically creates a good impression in front of its customers. With the increase of E-commerce businesses in the world, the need for proper payment gateways is also increasing.

    FAQs

    What is a Payment Gateway?

    A payment gateway platform gives authority to the users to conduct an online transaction through various payment modes such as net banking, credit card, debit card, UPI, and other online payment apps.

    Where payment gateways are used?

    Payment Gateways are used mostly used by E-commerce businesses.

    What are some top 5 Payment Gateways?

    The top 5 payments gateways are:

    • Razorpay
    • Instamojo
    • BillDesk
    • Paytm
    • Payflow

    Which is better, Paytm or PayPal?

    The choice between Paytm and PayPal will depend on your specific needs and preferences. It may be helpful to consider factors such as geographical availability, payment methods, fees, and security when deciding which platform is right for you.

    Who regulates payment gateways in India?

    In India, payment gateways are regulated by the Reserve Bank of India (RBI), which is the central bank of the country.

    Which is the cheapest payment gateway in India?

    Cashfree Payment gateway is as of now, one of the cheapest payment gateways in India.

    Is UPI available only in India?

    UPI is not limited to India and has been adopted by some financial institutions and payment service providers in other countries as well such as Bhutan, Nepal, UAE, and the UK.

    Which is better, Razorpay vs Billdesk?

    Razorpay is better for startups and online businesses because it offers easy integration, many payment options, and instant settlements. BillDesk is more suited for large enterprises and utility bill payments due to its reliability and strong security.

    Which is better, HDFC Payment Gateway vs Razorpay?

    Razorpay is better for startups and developers due to its easy setup, modern features, and instant settlements, while HDFC Payment Gateway is ideal for established businesses needing a bank-backed, secure solution.

    Which is the best payment gateway for startups in India?

    The best payment gateway for startups in India is Razorpay because it offers easy integration, multiple payment options, fast settlements, and low setup hassle.

    Which are the payment gateway for website in India?

    Razorpay, PayU, and Cashfree are top payment gateways for websites in India, offering easy integration and fast payments.

    Which is the best payment gateway for online business?

    The best payment gateway for online business in India is Razorpay due to its seamless integration, wide payment options, and quick settlements.

  • IRDAI Introduces Bima-ASBA Through UPI to Facilitate the Payment of Insurance Premiums

    One-Time Mandate (OTM) via the Unified Payments Interface (UPI) is now permitted for insurance businesses by the Insurance Regulatory and Development Authority of India (IRDAI). Policyholders will be able to block money in their bank accounts for particular transactions thanks to this function. According to IRDAI, funds are transferred from the prospect to the insurer only after an insurance policy is issued under the Bima Applications Supported by Blocked Amount (Bima-ASBA) program. With this service, insurers can provide a one-time order to block a specific amount in the concerned prospect’s bank account via UPI. It further said that only if the insurer accepts the request will the money for the insurance premium be deducted. The sum will be unblocked and made accessible to the prospect in the event that the insurer rejects the proposal.

    Facility is Open for Both Health and Life Insurance

    Insurers are required to provide the facility to both life and health insurance policyholders and have been instructed to provide a proposal form to policyholders via a standard declaration in order to block the amount through UPI. To be included in the request for approval, the Life and General Insurance Councils must both release a standard declaration within a week following IRDAI’s circular. Additionally, the regulator stated that policyholders who choose not to use Bima-ASBA will not have their bids denied.

    According to the circular, insurance firms must collaborate with several banks, have suitable procedures and systems in place, and have the required contracts with partner banks. According to the relevant statutes and legislation, this is necessary for the creation of the OTM by UPI exclusively in the insurer’s favour and for the prospect’s verification through a one-time mandate. The OTM has a maximum validity duration of 14 days or until the underwriting decision, whichever comes first.

    Amount Blocking Cycle

    After 14 days have passed after the funds were first stopped, or within one working day of the proposal form’s non-acceptance date, the sum under Bima-ASBA will automatically be unblocked. The insurer must use the facility to change the mandate with the prospect’s one-time approval or authorisation if the premium to be charged exceeds the banned amount. The insurer will automatically unblock the blocked amount through the partner bank if the application is not processed within 14 days. Customers will have access to this facility by March 1, 2025, at the latest.

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  • In December, UPI Transactions Reached a Record 16.73 Billion

    The volume of Unified Payments Interface (UPI) transactions increased by 8% month over month to reach 16.73 billion in December, the largest amount the digital system has seen since becoming live in April 2016. Additionally, the value rose from INR 21.55 trillion in November to INR 23.25 trillion, an 8% increase.

    In 2024, there were approximately 172 billion transactions, up 46% from 118 billion in 2023, according to data from the National Payments Corporation of India (NPCI). Compared to INR 183 trillion in 2023, transactions grew by 35% in value terms to over INR 247 trillion throughout the course of the year.

    Rise in Transactions in Various Segments

    A growth in person-to-merchant transactions (for purchasing products or services) caused the transactions to climb over the course of the year. UPI recorded 16.58 billion transactions in October, totalling INR 23.5 trillion, which was both its largest volume and value to date. The value was INR 20.64 trillion in September, with a volume of 15.04 billion.

    The daily transactions also went up from 516 million to 540 million in December compared to November. As a result, the daily value increased from INR 71,840 crore in November to INR 74,990 crore. Compared to December 2023, the December figures showed a 39% increase in volume and a 28% increase in value. Transactions through the Immediate Payment Service (IMPS) increased by 8% in December to 441 million, compared to 408 million in November and 467 million in October. Compared to INR 5.58 trillion in November and INR 6.29 trillion in October, this was an increase of 8% to INR 6.02 trillion in value terms. This represented a 6% increase in value over December 2023 and a 12% drop in volume compared to the previous year.

    December 2024 had 14.23 million daily transactions, up 5% from 13.6 million in November. This amounted to a daily transaction value of INR 19,405 crore, compared to INR 18,611 crore in November 2024.

    Growth in FASTag and AePS Transactions

    Compared to 359 million in November and 345 million in October, the amount of FASTag transactions increased by 6% to 382 million in December. In comparison to INR 6,070 crore in November and INR 6,115 crore in October, the value also rose by 9% to INR 6,642 crore. Compared to December 2023, this represented a 13% increase in value and a 10% increase in volume. December saw a 3% month-over-month growth in daily transactions, reaching 12.32 million.

     Transactions through the Aadhaar Enabled Payment System (AePS) increased by a small amount, from 92 million in November to 93 million in December. A slight increase in transaction value was also observed, reaching INR 24,020 crore from about INR 23,844 crore in November. The value was INR 32,493 crore, and the volume was 126 million in October. In November and December, there were 3.08 million and 3.02 million daily transactions, respectively. The volume and value of AePS transactions decreased by 1% and 5%, respectively, from the same period last year.

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  • The Market Cap Deadline for UPI Apps has been Extended by NPCI by 2 Years

    The deadline for imposing a transaction volume cap on Unified Payments Interface (UPI) apps has been extended by two years, to December 31, 2026, by the National Payments Corporation of India (NPCI). The NPCI has extended this deadline for the second time.

    The industry giants PhonePe and Google Pay, who handle the majority of UPI transactions in the nation, are anticipated to receive much-needed relief from the most recent development. According to NPCI data, the two handled roughly 47.8% and 37.02% of UPI transaction volumes in November, respectively. The deadline for current third-party application providers (TPAPs) to comply was extended by an additional two years by the apex payments authority after “considering various factors.” This occurs during a period of explosive rise in transaction volumes for the real-time payments system.

    Rise in UPI Transactions

    As of November, UPI had recorded 155.44 billion transactions to date this year, up 32.2% from 117.58 billion transactions in CY23. In November 2020, the NPCI first suggested a 30% cap on the number of transactions that UPI apps may handle. The current players were given two years to comply with the volume cap. In order to address possible issues like the risk of concentration among leading businesses, the apex payments authority sought to implement market cap. UPI apps, meanwhile, have expressed concern that a quota may restrict both their and UPI’s growth.

    Players Welcomed the Move

    “I firmly think that this market cap problem will be resolved by the market itself within the next two years.” According to Vishwas Patel, head of the Payments Council of India (PCI) and joint managing director of Infibeam Avenues, preventing the expansion of incumbents is not the best course of action and would have undoubtedly hindered the growth of UPI.

    “Since we firmly believe that customers will select from among the dozens of new UPI apps available, we applaud the NPCI’s extension of the market cap deadline for UPI apps. Paytm is making a comeback to regain its market share,” stated Patel. While elaborating further, Patel added that a number of innovative apps, like Cred, WhatsApp Pay, Bharat Interface for Money (BHIM), and Navi, are expanding rapidly. In August 2024, the NPCI split off BHIM to become NPCI-BHIM Services Ltd. (NBSL).

    The NPCI also removed the UPI user onboarding cap for WhatsApp Pay, the messaging juggernaut WhatsApp’s UPI platform. All Indian users will now be able to access the messaging giant’s UPI services. “WhatsApp Pay may now offer UPI services to all of its users in India thanks to this development,” the apex payments authority said in a statement released on 1 January.

    “We’re dedicated to making WhatsApp payments easy, dependable, and safe. Through a variety of use cases, such as bill payment, ticket booking, and shopping, we hope to improve users’ lives and make them more convenient,” the release stated further. A WhatsApp representative stated, “We want to continue supporting India’s digital and financial inclusion strategy while also accelerating the use of digital payments and UPI.

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  • In November, UPI Value Falls 8% and Volume Declines 7%

    According to data from the National Payments Corporation of India (NPCI), the volume of Unified Payments Interface (UPI) transactions decreased by 7% to 15.48 billion in November, while the value of these transactions decreased by 8% to INR 21.55 trillion. They reached an all-time high in October thanks to festive sales.

    October saw the most transactions through UPI since the digital system’s launch in April 2016, with 16.58 billion totaling INR 23.5 trillion. The value was INR 20.64 trillion, and the volume was 15.04 billion in September. Due to an increase in person-to-merchant transactions (for the purchase of goods or services) over the festive season, October transactions were higher than November transactions.

     This was a 38% increase in volume and a 24% increase in value compared to November 2023. The value of the transactions decreased from INR 75,801 crore in October to INR 71,840 crore in November of this year, as the number of daily transactions also decreased from 535 million in October to 516 million in November. 

    IMPS Transactions Declined by 13%

    Transactions using the Immediate Payment Service (IMPS) decreased 13% in November to 408 million from 467 million in October. In terms of value, they fell from INR 6.29 trillion in October to INR 5.58 trillion in November, an 11% decrease.

    Last month’s IMPS transactions had a 14% decrease in volume but a 4% increase in value when compared to November 2023. In comparison to last month, the number of daily transactions fell from 15 million to 14 million, and the value of daily transactions declined from INR 20,303 crore to INR 18,611 crore.

    FASTag Transactions Increase by 4%

    The number of FASTag transactions increased from 345 million in October to 359 million, a 4% increase. Compared to INR 6,115 crore in October, the value decreased by about 1% to INR 6,070 crore. This was 318 million and INR 5,620 million in September, respectively. Compared to the same month in 2023, the November FASTag data showed a 14% increase in value and a 12% increase in volume. There were 12 million transactions per day, up from 11.13 million.

    Transactions through the Aadhaar Enabled Payment System (AePS) fell 27% to 92 million from 126 million in October. From INR 32,493 crore in October to INR 23,844 crore during the review period, the value of transactions decreased by 27%. In September, there were 100 million transactions with a total value of INR 24,143 crore. Compared to the same period last year, the volume and value of AePS transactions decreased by 16% and 20%, respectively.

    India’s payments ecosystem is thinking of switching low-ticket transactions to UPI Lite, according to Dilip Asbe, managing director and CEO of the NPCI. This occurs months after the Reserve Bank of India raised the limit for UPI 123Pay transactions from INR 5,000 to INR 10,000. Similar to this, UPI Lite’s transaction limit was increased from INR 500 to INR 1,000.

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  • There Have Been 6.3 lakh UPI Fraud Incidents Totalling INR 485 cr so Far in FY25

    As of September 2024, 6.32 lakh cases of UPI payment scams totalling INR 485 crore had been registered nationwide, according to RBI data. In FY24, there were 13.42 lakh UPI fraud instances, involving around INR 1,087 crore, a significant increase from FY23’s INR 573 crore. In FY 2023-24, the RBI reported that ‘financial scams’ cost Indians INR 2,715 crore, with each case involving sums of INR 1 lakh or more. Pankaj Chaudhary, the Minister of State (MoS) for Finance, presented the information to the Lok Sabha on 25 November.

    The amounts involved in fraud cases in commercial banks and all Indian financial institutions decreased in FY24 from FY23, when they stood at INR 3,607 crore, according to Reserve Bank of India (RBI) data on financial frauds based on the date of occurrence and the amount involved of INR 1 lakh and above in each case, MoS Chaudhary said. According to the minister, there has been a decrease in financial fraud during the last three years. In FY 2021–2022, there were financial scams of INR 9,298 crore.

    Tamil Nadu Tops the List

    With 6,468 financial fraud instances totalling INR 663.63 crore in FY24, Tamil Nadu recorded the most, followed by Maharashtra with INR 391.78 crore and Karnataka with INR 243.43 crore. The amount engaged in frauds has decreased over the years as a result of extensive measures implemented to prevent financial frauds and discourage scammers, Chaudhary stated.

    According to the minister, the RBI released updated master directions on “fraud risk management” in commercial banks and All India Financial Institutions (AIFIs) in July 2024 after reviewing previous master directions, circulars, and new challenges. In addition to highlighting the necessity of establishing a strong internal audit and controls framework, these also mandate a framework on early warning signals and red flagging of accounts, strengthen the board’s role in governance and oversight of fraud risk management, and create a dedicated data analytics and market intelligence unit in banks.

    Central Payment Fraud Information Registry (CPFIR)

    According to the minister, the RBI has been using the Central Payment Fraud Information Registry (CPFIR), a web-based mechanism for reporting payment-related crimes, since March 2020 in an effort to stop frauds arising from UPI transactions. Payment-related scams must be reported to the aforementioned CPFIR by all regulated enterprises (RE).

    The government and regulatory agencies have put in place measures like device binding, which links a customer’s mobile number to the device; two-factor authentication via PIN; a daily transaction cap; and restrictions on use cases, among others, to stop payment-related frauds, including UPI transaction frauds.

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  • Paytm Makes it Simple to Track Expenses by Launching the UPI Statement Download Option

    Paytm, a major player in digital payments, has introduced a new feature that lets users download UPI statements straight from the app. By providing transaction data in an easily readable, downloadable PDF format, this update seeks to simplify the process of keeping track of spending and being ready to file taxes.

    The “Balance & History” area of the app is where Paytm users may access the new UPI statement download option. In order to generate comprehensive statements that include transaction amounts, recipient information, bank accounts used, and timestamps, users can choose particular date ranges or even full fiscal years. These documents, which are organised, help users manage their financial records, budget, and keep tabs on their expenditures.

    It is anticipated that both people and tax professionals will find the UPI statement download service very helpful. Users can keep thorough records with this function, which makes tax filing and spending reviews easier.

    Service Will Bring in More Transparency and Help in Managing Finances

    According to a Paytm spokesperson, the service is made to satisfy the demands of consumers who value openness and simplicity in handling their money. The company’s dedication to developing mobile payments motivates it to provide services that make financial management easier and give its customers convenience. The company provides quick access to transaction history through the UPI statement download, enabling consumers to make wise financial decisions.

    Along with this capability, Paytm keeps improving its services by adding features like UPI Lite, which enables uncluttered bank statements for minor transactions under INR 2,000.

     The platform’s reputation as a complete digital payments solution is further supported by its ability to link RuPay Credit Cards with UPI, auto-pay for smooth bill payments, and self-account transfers.

    Paytm Receives NPCI Approval to Onboard New UPI Customers

    Last month,  One97 Communications (OCL), the firm that runs the Paytm brand, announced on 22 October 2024 that it has been given permission by the National Payments Corporation of India (NPCI) to onboard new UPI users.

    In a letter to Vijay Shekhar Sharma, the founder and CEO of the Noida-based company, NPCI chief Dilip Asbe gave the company permission to start onboarding new users. The NPCI’s procedural rules and agreements with Payment Service Provider (PSP) banks govern the permissions.

    According to the filing, “Paytm would like to notify the exchange that the National Payments Corporation of India (NPCI) has authorised the company to onboard new UPI users in accordance with all NPCI procedural standards and circulars, as stated in a letter dated October 22, 2024.” The corporation may see a rise in UPI transaction volumes as a result of the decision to onboard new users. 

    The fintech major’s associate entity, Paytm Payments Bank, was subjected to severe restrictions by the banking regulator in January, which resulted in a substantial decline in its UPI market share. The NPCI’s approval will fume fresh energy into the business operations of Paytm. 

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  • In October, UPI Registered a 10% Month Over Month Growth

    Between September and October of 2024, the volume and value of transactions using the Unified Payments Interface (UPI) increased fairly. According to figures released by the National Payments Corporation of India (NPCI), the digital payment network logged 16.58 billion transactions in October, a 10% rise from 15.04 billion in September.

    From INR 20.64 lakh crore in September to INR 23.50 lakh crore in October, the transaction value increased by 14%. A 37% increase in transaction value and a 45% increase in transaction quantity year over year drove this gain.

    Average Daily Transaction Grows to 535 Million in October

    Additionally, from September to October, the average daily transaction volume climbed from 501 million to 535 million, with the daily transaction amount reaching INR 75,801 crore, a significant rise from INR 68,800 crore the month before.

    PhonePe continued to hold the top spot in the UPI market in India in September, accounting for 48% of all transactions. Second place went to Google Pay with 37.4%, and third place went to Paytm with 7%. The October market share figures are still pending.

    New Adjustments Made by the NPCI

    The parent firm of Paytm, One97 Communications Limited, was recently given permission by the National Payments Corporation of India (NPCI) to onboard new users onto its UPI network. It is anticipated that the Noida-based company will benefit from the new authorisation by increasing its user base and market share in the cutthroat UPI industry.

    Significant adjustments to UPI transaction restrictions have been made by NPCI in recent weeks. The restrictions for UPI Lite Wallet and UPI 123Pay have also been lifted, and the maximum amount for some UPI payment types has been raised to Rs INR lakh. With these changes, the Indian government hopes to support its ambitious aim of 1 billion transactions per day by 2026–2027 by promoting a higher use of digital transactions.

    How UPI has Become a Game-Changer in India’s Financial Market?

    The Unified Payments Interface is a ground-breaking technology that has completely changed the financial scene in India. It has greatly simplified digital transactions and increased the accessibility and convenience of money transfers.

     Additionally, UPI is essential for strengthening the Indian economy. This payment interface is equipped with a cutting-edge payment system, and it examines its features, advantages, and noteworthy influence on India’s economic development. The National Payments Corporation of India (NPCI) created the real-time payment system known as UPI. It makes it possible to combine several bank accounts into one mobile app. Fund transfers are made quick and simple by combining a number of banking functions.

    With more than 100 banks providing UPI-based services, UPI has gained widespread acceptance in India and enables instantaneous, round-the-clock interbank transactions.

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  • In Few Months, RBI Anticipates that Daily UPI Transactions Would Reach 1 billion

    According to Governor Shaktikanta Das, the Reserve Bank of India (RBI) anticipates that the number of daily Unified Payments Interface (UPI) transactions will surpass one billion in the coming months from the current 500 million transactions per day.

    Das stated during a panel discussion at the Group of Thirty’s Annual International Banking Seminar in Washington, DC, on October 26, 2024, that the RBI will not make a hasty announcement about a nationwide rollout of the central bank of digital currency (CBDC) because it wants to carry out extensive testing and be completely certain about its design, robustness, and security before thinking about a wider rollout.

    The payments system is now much more efficient thanks to UPI. Approximately 500 million transactions are made over UPI every day. “We are trying to step it up further and the idea is to reach a billion transactions, may be in the next few months,” Das stated.

    What National Payments Corporation of India’s Data Reveals?

    According to data from the National Payments Corporation of India, the average number of transactions per day increased from 483 million in August to above 500 million in September. UPI handled 15.04 billion transactions in September 2024, totalling INR 20.64 lakh crore.

    The RBI is working to integrate UPI with more nations’ payment systems. In fact, UPI has a lot of potential for international payments. According to Das, the RBI has also taken the initiative to connect India’s UPI with other nations’ quick payment systems.

    Seven Countries Using UPI For Transactions

    Seven nations presently provide UPI: France, the United Arab Emirates, Singapore, Bhutan, Sri Lanka, Mauritius, and Nepal.

    Regarding the e-rupee, the governor stated that the RBI will implement the CBDC nationwide in a phased manner. Cross-border payments represent the CBDC’s greatest potential. Through the removal of numerous middlemen, CBDC can enable quick, easy, and inexpensive cross-border money transactions.

    On November 1, 2022, the RBI began the first CBDC trial phase for wholesale transactions of government securities. A month later, on December 1, the RBI began the pilot for retail transactions.

    Current Performance of UPI in India

    PhonePe is the most popular UPI app in terms of volume and value contribution, followed by Google Pay and Paytm. However, according to a report by payment technology service provider Worldline, the average ticket size (ATS) of UPI transactions decreased by 8%. According to the report, the average ticket size (ATS) for all UPI transactions was INR 1,603 in the first half of 2023 and fell to INR 1,478 in the first half of 2024.

     P2P (person-to-person) and P2M (person-to-merchant) transactions make up ATS. In P2P transactions, ATS saw an almost constant increase from INR 2,812 to INR 2,836 year over year. The amount of ATS for P2M transactions decreased by 4%, from INR 667 to INR 643.

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  • NPCI International to Establish Trinidad & Tobago’s UPI-Like Payments Platform

    To create a real-time payments platform for Trinidad and Tobago that is similar to the Unified Payments Interface (UPI), NPCI International Payments (NIPL) and the Ministry of Digital Transformation (MDT) have partnered strategically.

    The first country in the Caribbean to use India’s well-known instant payments network, UPI, is Trinidad and Tobago.

    According to a press release from NIPL, the partnership will enable person-to-person (P2P) and person-to-merchant (P2M) payments in real time, thereby increasing digital payments in the nation and promoting financial inclusion.

    The Service Will Bring More Transparency in the Region

    This relationship will improve accessibility, affordability, connectivity with domestic and international payment networks in the future, and interoperability by utilising technology and experiences from India’s UPI, according to the announcement.

    Real-time payments may change economies by increasing access to necessary financial services and decreasing dependency on cash, as NPCI International’s experience with UPI in India has shown.

    Ritesh Shukla, CEO of NPCI International, stated, “We look forward to working closely with the Ministry of Digital Transformation and the Central Bank in Trinidad and Tobago.”

    Additionally, NIPL delegations made multiple trips to Trinidad and Tobago in order to further negotiations. This programme is in line with India’s overarching goal of being the world leader in digital public infrastructure (DPI). In order to expedite DPI projects in underdeveloped countries, Prime Minister Narendra Modi announced the establishment of a Social Impact Fund and the Global Digital Public Infrastructure Repository (GDPIR) during India’s 2023 G20 Presidency.

    Trinidad and Tobago is anticipated to reap several advantages from the implementation of UPI, such as reduced transaction expenses, enhanced tax adherence, and enhanced clarity in public assistance initiatives. Significant financial innovation and economic development in the nation may be facilitated by this relationship.

    India’s UPI Success Is Now Travelling to Other Nations

    As the leader of India’s payments transformation, UPI is being introduced to other nations by the NPCI, the organisation that manages it, and the Indian central bank. Bhutan, Sri Lanka, Nepal, Singapore, and France are among the nations that are either utilising the open source platform to develop their own immediate payment systems or connecting to the UPI framework to make it compatible with their own payment systems.

    The Ministry of Digital Transformation and the Ministry of Finance are excited to begin this important collaboration with NIPL in order to establish a digital payment system for Trinidad and Tobago, according to a spokeswoman for the Ministry of Digital Transformation in Trinidad and Tobago.

    Based on India’s UPI, the digital payment platform will support Fintech innovation and improve the technical resilience of the existing payment infrastructure by offering a supplementary, non-competitive digital payments platform that reduces the need for cash and increases security.

    “Furthermore, if implementation is effective, it will help our unbanked citizens become financially included. We would like to express our gratitude to the Central Bank of Trinidad and Tobago for being a key participant and strategic partner in this significant project. We are excited to work together with NPCI International to aggressively change the current payments landscape and create a cutting-edge digital payments ecosystem,” spokesperson added further.

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