At the Global Fintech Fest (GFF) 2025, industry leaders and policymakers discussed actionable strategies to onboard the next 300 million users onto India’s Unified Payments Interface (UPI) — a key milestone in the country’s digital inclusion journey.
As of June 2025, UPI caters to over 490 million individuals and 65 million merchants, processing nearly 18.4 billion transactions monthly. With the government aiming to expand this base to over 700 million users, experts at GFF 2025 highlighted that the next phase of growth will require trust-building, innovation, and deeper outreach to tier-2 and tier-3 cities.
Bridging Trust and Credit Gaps
Lalitha Nataraj, CEO of BHIM (developed by the National Payments Corporation of India), pointed out that many potential users remain hesitant due to a lack of credit-linked incentives and fear of transaction failures. “UPI activity currently doesn’t impact credit scores. If digital payments could contribute to building credit history, it would motivate more people to participate,” she said.
Nataraj emphasized the need for government-backed cashback schemes, enhanced fraud safeguards, and seamless transaction experiences to build confidence among new users.
Financial Literacy and Local Outreach
For the next 300 million users—largely from aspirational Bharat—digital literacy will be pivotal. Ravindra Rai, MD & CEO of BOB Card, proposed a ‘Digital Ambassador Programme’, inspired by the success of vaccination drives, to educate users in rural and semi-urban regions about the benefits and safety of digital payments. He also suggested introducing transaction insurance to protect users from fraud or failed transfers.
Strengthening Merchant and Tech Infrastructure
According to Ripunjai Gaur, COO (Offline Payments) at Paytm, expanding merchant networks in smaller towns and improving transaction reliability are critical for sustaining UPI’s growth. “The focus should now shift from urban saturation to rural activation — enabling every kirana store, service provider, and consumer to transact digitally with confidence,” he noted.
Frictionless Onboarding as the Next Frontier
A.S. Lakshminarayanan, CEO of Tata Communications, underscored that frictionless onboarding will define the success of UPI’s next growth wave. “Auto-enrolment, voice-assisted onboarding, and one-KYC solutions can make digital adoption effortless, especially for first-time users,” he said.
As UPI evolves into the backbone of India’s digital economy, the next leap will depend not only on innovation but also on inclusivity—ensuring that the benefits of fintech reach every corner of the country.
By: Sandhya Bharti
