Do credit cards still matter in a UPI‑first payments ecosystem? Here's what a report says

India’s digital payments ecosystem is evolving rapidly, with multiple payment options playing complementary roles, according to Worldline’s “India Digital Payments Report – Year 2025 in Review.”

According to the report, UPI continues to dominate daily transactions, processing 228.5 billion transactions in 2025, a 33% increase from 2024, with a total value of ₹299.74 trillion.

Merchant adoption of digital payments is accelerating, with UPI QR codes reaching 731.38 million and PoS terminals hitting 11.48 million, both up 15% year-on-year. Worldline notes the ecosystem is increasingly “QR-first, PoS-as-needed,” making digital acceptance accessible to even the smallest merchants.

Recurring payments via platforms like Bharat BillPay are also gaining traction, with 3.05 billion transactions worth ₹14.84 trillion, up 93% year-on-year. These automated, “set-and-forget” payments cover categories such as education, insurance, EMIs, and subscriptions.

Ramesh Narasimhan, CEO of Worldline India, said, “India’s digital payments ecosystem is entering a new phase of maturity…distinct roles are emerging across UPI, cards, and recurring platforms, supported by expanding acceptance infrastructure.”

The report concludes that India is moving toward a multi-rail payments model: UPI for everyday micro-transactions, cards for high-value and online commerce, and Bharat BillPay for recurring payments, signaling a more structured and sustainable digital economy.