Industry Odisha Bureau, Sep 22: UPI payments now dominate India’s retail transactions. Debit cards remain widespread, yet Indians use them less to pay. Credit cards and cash are rising too.
A Billion Cards, Fewer Payments
India had about 1.04 billion debit cards by March 2026. That is up from roughly 965 million two years earlier. Yet debit-card payments fell sharply in the same period. They dropped from 2.29 billion to 1.28 billion, a 44% decline. Payment value fell less steeply, down about 25%. So each remaining debit-card payment grew larger. The average payment rose from roughly ₹2,592 to ₹3,480.
UPI Takes the Everyday Payment
UPI transactions surged from 131 billion to nearly 242 billion. That marks growth of about 84% in two years. UPI’s retail payment share rose from 80% to nearly 86%. Yet the average UPI payment shrank, from about ₹1,525 to ₹1,300. This suggests UPI increasingly handles frequent, smaller payments. It does not prove every payment shifted from debit cards. Aggregate figures cannot track individual switching.
Credit Cards Defy the Debit Decline
Credit cards moved in the opposite direction. Payments rose from 3.56 billion to 6.02 billion, up 69%. Payment value climbed from ₹18.3 lakh crore to ₹23.6 lakh crore. Credit cards in circulation grew to about 119 million. India still has nearly nine debit cards for each credit card. Yet credit cards now generate far more payments. Credit cards overtook debit cards in 2023-24. The gap has widened every year since.
Infrastructure Keeps Expanding
Card machines rose from 8.9 million to 11.8 million, up 32%. UPI QR codes more than doubled, reaching about 761 million. Payment acceptance infrastructure keeps growing, even as debit-card usage falls.
Cash Refuses to Disappear
Banknotes in circulation reached about ₹41.2 lakh crore in March 2026. That is up 11.9% from a year earlier. RBI has noted a “continued strong preference” for cash. Digital payments and cash are growing side by side. RBI describes this as the currency demand paradox.
India’s Payments Are Becoming Specialised
UPI leads on payment frequency. Credit cards lead within card-based spending. Debit cards remain widespread but now serve ATM withdrawals more than payments. Cash persists alongside rapid digital growth. India’s payment ecosystem is not consolidating around one method. It is splitting into distinct, specialised roles.
