UPI set for global leap with biometric authentication, Chat-based payments: Worldline

The next phase of growth for India’s Unified Payments Interface (UPI) will be powered by frictionless biometric authentication and conversational “chat and pay” journeys, according to a report released by Worldline, a global payments service provider.

The report, titled India Digital Payments Report for the First Half of 2025, highlights that UPI’s expansion is entering a transformative stage, supported by innovations that enhance ease, security, and inclusivity in digital transactions. It noted that global corridors such as Singapore and the United Arab Emirates (UAE) have already extended UPI’s reach beyond India, while chat-based payment systems and UPI Autopay are simplifying digital interactions for users.

Worldline stated, “The next chapter will bring major advances: frictionless biometric authentication and conversational ‘chat and pay’ journeys, and the adoption of embedded finance use cases that bring recurring payments and global corridors to mainstream audiences.” These developments, the report added, will help make recurring payments and cross-border transactions more accessible and widely used.

According to the report, India’s UPI ecosystem continues to be driven by two key segments — peer-to-peer (P2P) transfers and peer-to-merchant (P2M) payments. During the first half (1H) of 2025, P2P transactions increased by 31 per cent to reach 39.35 billion, while P2M transactions rose by 37 per cent to 67.01 billion.

This growth reflects how digital payments have become a routine part of everyday purchases, particularly in sectors such as groceries, pharmacies, food and beverages, and utilities, where QR-based payments are now widely accepted. While these transactions generally involve smaller amounts, they have significantly expanded UPI’s overall reach across the country.

The report attributes this shift toward merchant payments to the rapid spread of QR codes, enhanced digital acceptance infrastructure, and growing user trust. Merchant payments are now more frequent than peer-to-peer transfers, as users increasingly rely on UPI for routine expenses.

The next set of growth drivers, the report observed, will include credit on UPI and small-ticket EMIs. The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) are guiding innovation in these areas to encourage higher-value transactions within the merchant segment while maintaining high overall volumes.

Highlighting the underlying principle of India’s digital success, the report stated, “India’s strength lies in frequency, not size — every micro-payment fuels a macro shift.” This observation underscores how the country’s payments ecosystem is built on billions of small, recurring transactions rather than a few high-value transfers, reflecting deep penetration of digital payments across all economic segments.

Additionally, the report pointed out that the ecosystem continues to evolve as cards reposition themselves for premium users, and platforms such as FASTag and Bharat Connect enable seamless, invisible payments integrated into daily life.

Worldline concluded that the first half of 2025 marked a significant milestone for India’s digital payments landscape, consolidating the country’s position as a global leader in scale, innovation, and financial inclusion. With changing consumer behaviour, increasing merchant acceptance, and strong regulatory support, India’s digital payments ecosystem is becoming more versatile, secure, and inclusive than ever before.