NPCI wants UPI payments to become as seamless as credit cards
India’s digital payments market is heading into another major competition phase.
The National Payments Corporation of India (NPCI) is accelerating the rollout of “UPI Meta” or “UPI Checkout” to make online UPI payments faster and smoother. The move comes as industry discussions around Apple Pay entering India continue to grow.
Executives in the payments industry believe Apple Pay could attract premium users through its seamless biometric-based payment experience linked with credit cards.
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When Was UPI Launched in India?
The Unified Payments Interface (UPI) was officially launched in India on 11 April 2016 by the National Payments Corporation of India (NPCI) under RBI supervision.
When Did UPI Capture the Indian Market?
| Year | UPI Growth Phase | Major Development |
|---|---|---|
| 2016 | Launch Phase | Limited adoption, mainly bank-led |
| 2017 | Early Growth | Demonetisation accelerated digital payments |
| 2018–2019 | Mass Adoption | Google Pay, PhonePe, Paytm expanded aggressively |
| 2020 | Pandemic Boom | Contactless payments became mainstream |
| 2021–2022 | Market Dominance | QR payments exploded across small merchants |
| 2023–2024 | Everyday Utility | UPI became India’s default retail payment system |
| 2025–2026 | Global Scale Era | UPI handled nearly 49% of global real-time payments |
Highest UPI Growth in India
| Year | Growth Highlight |
|---|---|
| 2017 | UPI transactions grew nearly 900% YoY |
| 2018 | Another 246% YoY growth |
| 2020–2021 | Pandemic-led digital payments explosion |
| 2025–2026 | Record transaction scale achieved |
UPI Record Growth Numbers
| Metric | FY 2016-17 | FY 2025-26 |
|---|---|---|
| Annual Transactions | 2 crore | 24,162 crore |
| Transaction Value | ₹0.07 lakh crore | ₹314 lakh crore |
| Growth | — | Nearly 12,000x increase |
Here’s what happened today and why traders reacted
The latest developments around UPI Meta quickly caught the market’s attention because the move could reshape India’s online payments ecosystem.
NPCI is reportedly planning to introduce the product during the Global Fintech Fest in Mumbai later this year.
The concern for NPCI is that credit cards are becoming increasingly fast and convenient for online payments. With tokenised cards and biometric authentication, users can now complete transactions in seconds.
“Several banks have already enabled biometric authentication for card payments. The experience is now almost as fast as UPI,” a senior executive associated with a UPI app said.
Industry experts also believe Apple Pay’s expected India launch has added urgency to NPCI’s plans.
Key developments investors are watching:
- NPCI accelerating UPI Meta rollout
- Apple Pay’s expected India entry
- Faster biometric-enabled payments
- Competition between UPI and credit cards
- Concerns over UPI market concentration
What is UPI Meta and why is NPCI pushing it?
UPI Meta, also called UPI Checkout, is designed to simplify online UPI transactions.
The feature would allow users to save their preferred UPI handle directly on ecommerce apps like Amazon, Blinkit, or Swiggy. Once selected, customers can complete payments through UPI PIN or biometrics without repeatedly choosing payment apps.
The goal is to create a one-click payment experience similar to credit cards.
Key features of UPI Meta:
- Faster online UPI checkout
- Saved default UPI payment option
- Biometric authentication support
- Reduced payment friction
- Better ecommerce payment experience
NPCI believes this could help UPI compete better against cards for smaller-value online transactions.
“UPI Meta could make digital payments almost as seamless as scanning a QR code offline,” another executive involved in discussions said.
Apple Pay’s possible India launch has raised the stakes
Apple Pay’s expected India entry is becoming a major talking point in the fintech sector.
Globally, Apple Pay is known for its tightly integrated ecosystem that combines tokenised cards with biometric authentication like Face ID.
Industry executives believe the platform could attract affluent users who already prefer premium devices and credit cards for online spending.
“Apple controls both hardware and software, which allows it to offer a smoother payment experience,” a payments industry executive said.
NPCI officials reportedly believe that combining UPI Meta with biometric authentication can help UPI stay competitive against Apple Pay and card-based payment systems.
Smaller fintech apps fear PhonePe and Google Pay may benefit the most
While NPCI sees UPI Meta as a strategic move, several smaller fintech companies are worried about its long-term impact.
Apps like Amazon Pay, CRED, Navi, and super.money fear users may simply save PhonePe or Google Pay as their default payment option.
That could make it harder for smaller apps to attract users, even if they offer better cashback or user experience.
“Once a customer sets a default payment app, smaller players may struggle to get visibility,” a senior fintech executive said.
Current UPI market share:
- PhonePe: Around 45 percent
- Google Pay: Around 33 percent
- Paytm: Around 6 percent
- Smaller apps like Navi and BHIM: Around 1-2 percent each
What impact could this have on investors and the market?
The latest developments highlight how critical India’s digital payments market has become.
UPI currently processes nearly 22 billion transactions every month worth around Rs 30 lakh crore. It also accounts for nearly 86 percent of India’s digital payments ecosystem.
For investors, the biggest takeaway is that the next phase of competition may focus more on controlling the checkout experience rather than simply acquiring users.
For traders, any updates around Apple Pay’s India launch, NPCI’s rollout plans, or UPI market share rules could influence fintech stocks in the coming months.
The battle in India’s payments industry is clearly shifting — and the next big fight may be about who controls the consumer’s default payment choice.
