DigitalPayments – UPI and Credit Cards Redefine India’s Spending Trends
DigitalPayments – India’s payment ecosystem is undergoing a decisive transformation, with digital platforms steadily overtaking cash and traditional card usage. Recent data released by the Reserve Bank of India (RBI) indicates that since 2023, both the volume and value of transactions conducted through Unified Payments Interface (UPI) and credit cards have risen sharply, signalling a long-term structural change in the way individuals and businesses handle money.
UPI Network Expands at Record Pace
Among all payment methods, UPI has witnessed the most dramatic rise. The number of QR codes deployed across merchants surged from 24.42 crore in 2023 to 73.84 crore in 2026. This threefold expansion highlights the rapid adoption of digital payments, particularly for low-value, everyday purchases.
The sharpest growth occurred between 2024 and 2025, when QR deployments jumped from 32.14 crore to 64.01 crore. Industry observers note that this rapid increase reflects deeper penetration into small businesses, neighbourhood shops and service providers that previously relied heavily on cash transactions. The widespread availability of QR codes has simplified digital acceptance for merchants, making electronic payments more accessible across urban and semi-urban markets.
Credit Card Base and Spending Climb Steadily
Credit card usage has also strengthened significantly during the same period. The number of active credit cards rose from 8.25 crore in 2023 to 11.66 crore in 2026, marking an increase of over 3.4 crore cards, or about 41 percent. This expanding card base has directly contributed to higher transaction volumes across physical and online retail channels.
At point-of-sale terminals, credit card transactions nearly doubled, rising from 14.09 crore in 2023 to 26.75 crore in 2026. In value terms, spending through credit cards at physical outlets grew from Rs 48,934 crore to Rs 75,988 crore over four years. The figures suggest growing consumer confidence in credit-led purchases, particularly for higher-value transactions.
E-Commerce Drives Higher-Value Transactions
The momentum is even more visible in the online segment. Credit card transactions on e-commerce platforms increased from 11.84 crore in 2023 to 26.93 crore in 2026. The total value of these online transactions climbed to Rs 1,23,021 crore, underlining the central role of credit cards in digital commerce.
With rising online shopping activity, credit cards have strengthened their position in big-ticket consumption categories such as electronics, travel bookings and lifestyle purchases. The data suggests that while UPI dominates small-ticket payments, credit cards remain the preferred choice for higher-value online spending.
Debit Card Usage Declines at Retail Counters
In contrast to the upward trend in UPI and credit cards, debit card usage at retail outlets has weakened noticeably. Point-of-sale transaction volumes through debit cards dropped from 17.43 crore in 2023 to 7.73 crore in 2026. The total value of these transactions also fell, from Rs 37,520 crore to Rs 25,513 crore during the same period.
This decline comes despite an increase in the number of debit cards in circulation, which rose from 94.56 crore to 103.77 crore between 2023 and 2026. The figures indicate that although more debit cards are being issued, their use in active retail spending is diminishing compared to UPI and credit cards.
ATM Network Contracts as Cash Demand Moderates
The changing payment landscape is also reflected in the country’s cash infrastructure. The total number of automated teller machines peaked at 19.80 lakh in 2024 before declining to 15.99 lakh by 2026. From the 2024 high to 2026, nearly 3.8 lakh ATMs were removed from the system. Even when compared with 2023, the ATM network is smaller in 2026.
The contraction in ATM installations aligns with reduced reliance on debit cards at point-of-sale terminals and the growing preference for QR-based and credit-enabled transactions. Together, these trends illustrate a clear shift toward digital payment modes, marking a significant evolution in India’s financial ecosystem.