An Incredible Journey of India Towards the Digital Payment: A Comparative Study of UPI & IMPS Over a Decade

Abstract

India is moving rapidly towards a digital and cashless or less-cash-dependent economy through the Digital India movement. In this journey, various initiatives have been launched by the Government of India, and the Unified Payment Interface (UPI) is one such initiative. It provides a fast and simplified way of transferring funds instantly from one account to another without visiting a bank. Earlier, the Immediate Payment Service (IMPS) was mainly used to transfer small amounts instantly, but over the last 10 years, the way people transfer money has changed drastically. UPI has become so popular that it has replaced physical cash to a great extent in day-to-day transactions. It has now become so common that almost everyone accepts and makes online payments. UPI has revolutionised online payments in day-to-day life. Both UPI and IMPS are important tools for digital banking and are used to transfer funds (within specified limits) instantly using mobile phones. In this article, a comparative study of UPI and IMPS has been conducted on the basis of their annual transaction volume and transaction value over the last 10 years (from 2016-17 to 2025-26). Various statistical tools have been used to analyse and present the data. The study shows the extent to which UPI has been used and how it has surpassed IMPS in popularity over the last 10 years. The global popularity of UPI is also described. Thus, this study examines the impact of UPI on day-to-day activities and its popularity.