How people pay in India in 2026
India is the world's showcase for account-to-account payments. UPI, the instant payment system run by the National Payments Corporation of India (NPCI), handled 24.5 billion transactions worth Rs 29.8 lakh crore in August 2026, according to the Reserve Bank of India. That is more than 30 times the number of card payments in the same month. In September 2026, daily UPI volume crossed 800 million transactions for the first time. Shoppers pay by scanning a QR code, entering a UPI ID or approving a request in apps such as PhonePe, Google Pay and Paytm.
Cards still matter for higher tickets, credit and EMI plans. India had 124 million credit cards and more than one billion debit cards outstanding in August 2026, and credit cards made 632 million payments that month. Online, merchants also offer net banking, wallets and cash on delivery, which remains common outside large cities. NPCI planned a 0.4% merchant fee, capped at Rs 300, on UPI payments above Rs 2,000 from October 15, 2026, but deferred it until after Diwali, at a date still to be notified. For PSPs and merchants, India is a UPI-first market with a long card and cash tail.
- 24.5 billion UPI transactions in August 2026 (Reserve Bank of India)
- 813 million static UPI QR codes deployed at the end of August 2026 (Reserve Bank of India)
- 124 million credit cards outstanding in August 2026 (Reserve Bank of India)
- 41% of e-commerce orders prepaid in 2025, the rest paid on delivery (ClickPost via Social Samosa)
Payment by card in India
India had 1.04 billion debit cards and 124 million credit cards outstanding in August 2026, according to the RBI. Debit cards are used mostly at ATMs: they made only 104 million payments that month, against 632 million for credit cards, worth Rs 2.02 lakh crore. Card acceptance runs through 10.2 million POS terminals, far fewer than the 813 million UPI QR codes. Visa and Mastercard lead credit, while the domestic scheme RuPay, run by NPCI, dominates debit cards issued to new bank account holders.
RuPay's growth in credit comes from UPI. RuPay credit cards can be linked to UPI apps and used to pay any merchant QR code, and Kiwi estimated RuPay's share of credit cards at 10% in 2024, up from 3% a year earlier. Online card payments follow strict local rules. Since October 2022, merchants and gateways cannot store card numbers and must use card-on-file tokens, after the RBI extended the deadline to September 30, 2022. Recurring card payments need e-mandates with an extra factor of authentication. Our article on tokenization explains the model, and the right interchange setup matters for credit cards.
Card schemes in India
RuPay
Domestic card scheme
NPCI's domestic scheme, issued as debit, credit and prepaid cards by Indian banks. RuPay credit cards are the only credit cards that can be linked to UPI and used at merchant QR codes.
10% estimated share of credit cards in 2024, up from 3% in fiscal 2023, Kiwi via Outlook Business
Visa
International scheme
A leading brand on Indian credit and debit cards, accepted online and at POS terminals across the country.
Mastercard
International scheme
The other main international brand issued by Indian banks on credit and debit cards, widely used for e-commerce and cross-border spending.
Credit cards
Credit card
Credit cards are used for higher tickets, rewards and EMI conversions, and are concentrated among urban, salaried customers.
632 million credit card payments worth Rs 2.02 lakh crore in August 2026, Reserve Bank of India
Debit cards
Debit card
Debit cards are held by most bank customers, often RuPay, but are used mainly for cash withdrawals; UPI has replaced them for most small payments.
1.04 billion debit cards outstanding in August 2026, Reserve Bank of India
Payment by cash in India
Cash is still used every day for small purchases and in rural India, even though UPI QR codes are now everywhere. In e-commerce, cash on delivery remains a large share of orders. Logistics platform ClickPost found that prepaid orders rose to 41% in 2025 from 32% a year earlier, across 635 million orders it tracked. Prepaid reached 46% in metro areas but only 34.5% in Tier III markets, so most orders outside the big cities are still paid at the door.
Cash on delivery no longer always means banknotes. Couriers increasingly show a UPI QR code at the doorstep, so the customer pays digitally on receipt. Cash also enters the system through banking correspondents, who use Aadhaar-enabled micro ATMs: they handled 99.9 million cash withdrawals in August 2026, according to the RBI. Our article on the transition from cash to digital payments compares how other markets moved.
Cash payment methods in India
Cash
Banknotes and coins
Rupee notes and coins are still used for small purchases, informal retail and many rural households.
Cash on delivery
Cash on delivery
Shoppers pay the courier when the parcel arrives. It remains the main way to pay for online orders in smaller cities, which raises return rates and slows settlement for merchants.
59% of e-commerce orders not prepaid in 2025 (prepaid share 41%), ClickPost via Social Samosa
Pay on delivery by UPI
Payment on delivery
Couriers and marketplaces let customers settle a cash-on-delivery order by scanning a UPI QR code at the door, so the merchant gets funds faster without asking for prepayment.
Banking correspondents and AePS
Assisted cash point
Local agents of banks use Aadhaar-enabled micro ATMs to let customers withdraw and deposit cash with their fingerprint, which links rural cash users to bank accounts.
99.9 million AePS cash withdrawals at micro ATMs in August 2026, Reserve Bank of India
Payment by bank transfer in India
UPI is India's real-time payment system and its main way to pay. It links bank accounts to apps through a UPI ID or QR code and settles in seconds, at any time. The RBI counted 24.5 billion UPI transactions worth Rs 29.8 lakh crore in August 2026. NPCI data for September show 24.07 billion transactions, up 23% year on year. UPI also offers UPI Lite for small offline-style payments, UPI AutoPay for subscriptions and credit lines linked to UPI.
Older rails still carry large values. IMPS, NPCI's 24/7 instant payment service by account number, handled 360 million transactions worth Rs 7.04 lakh crore in August 2026, and NEFT processed 883 million transfers worth Rs 44.1 lakh crore. Online, net banking redirects to bank portals remain a standard checkout option, especially for bill payments and larger tickets. NPCI has announced a 0.4% merchant fee capped at Rs 300 on UPI payments above Rs 2,000, with small merchants exempt; planned for October 15, 2026, it was deferred until after Diwali. Our article on QR code payments in Asia puts UPI in context.
Bank transfer methods in India
UPI
Instant payment
NPCI's real-time account-to-account system, used through apps such as PhonePe, Google Pay, Paytm and banking apps, by QR code, UPI ID or in-app intent at online checkouts.
24.5 billion UPI transactions worth Rs 29.8 lakh crore in August 2026, Reserve Bank of India
UPI AutoPay
Recurring mandate
A UPI mandate that lets customers approve recurring debits once in their UPI app, used for subscriptions, OTT services, insurance premiums and loan repayments.
UPI Lite
Small-value wallet
An on-device balance inside UPI apps for small, PIN-free payments, designed to take low-value traffic off bank core systems.
IMPS
Instant transfer
NPCI's 24/7 interbank transfer service by account number and IFSC, used in banking apps and for business payouts.
360 million IMPS transactions worth Rs 7.04 lakh crore in August 2026, Reserve Bank of India
NEFT
Bank transfer
The RBI's round-the-clock electronic funds transfer system, settled in half-hourly batches, used for salaries, B2B payments and larger transfers.
883 million NEFT transactions worth Rs 44.1 lakh crore in August 2026, Reserve Bank of India
Net banking
Bank redirect
Customers are redirected from the checkout to their bank's online portal to authorize the payment; gateways connect dozens of Indian banks this way.
Payment by installment and BNPL in India
Installments, known in India as EMI, are the main form of buy now, pay later. Banks convert credit card purchases into no-cost or low-cost EMIs, often subsidized by brands, and lenders offer cardless EMI at checkout. With only 124 million credit cards in August 2026 for a population of more than 1.4 billion, cardless options fill a large gap. Snapmint, which offers EMI on UPI without a credit card, reported more than 7 million monthly active users and 1.5 million financed purchases a month in October 2025.
The market has been reshaped by regulation. RBI digital lending rules require credit to come from regulated banks and NBFCs, and pay-later apps work with lending partners. Simpl, once a popular one-tap pay-later option on food and grocery apps, was ordered by the RBI to stop its payment operations in September 2025 for running a payment system without authorization. Marketplaces now push their own pay-later lines, such as Amazon Pay Later, run with partner lenders.
Installment and BNPL providers in India
Credit card EMI
Card installments
Banks let cardholders split purchases into monthly EMIs at checkout, often as no-cost EMI where the brand or merchant pays the interest.
Cardless EMI
Point-of-sale loan
Banks and NBFCs offer pre-approved installment loans at checkout, approved with an OTP, to customers without a credit card.
Snapmint
EMI on UPI
A Mumbai-based EMI platform that lets shoppers pay for electronics, fashion and home purchases in installments using UPI, without a credit card.
7 million+ monthly active users in October 2025, General Atlantic
LazyPay
BNPL
PayU's pay-later and personal loan platform, offered as a one-tap credit option at checkout on partner apps, with EMI plans and credit from partner lenders.
$204 million assets under management of PayU India's credit business at the end of September 2025, Prosus results via Inc42
Amazon Pay Later
Marketplace credit
Amazon's pay-later line for shoppers on Amazon.in and partner merchants, letting them pay next month or in EMIs through partner lenders.
Payment by digital wallet and X-Pay in India
In India, the main digital wallets are UPI apps. In August 2026, PhonePe handled 45.6% of UPI transactions, Google Pay 32.3% and Paytm 8.0%, according to NPCI data compiled by StartupTalky. These apps also hold cards, offer UPI Lite and let users pay bills. Classic stored-value wallets, regulated by the RBI as prepaid payment instruments (PPIs), are still large on paper, with 2.33 billion PPIs outstanding in August 2026, but most spending now moves through UPI.
Paytm is the clearest case of change. In January 2024 the RBI barred Paytm Payments Bank from accepting fresh deposits, and Paytm moved its UPI users to partner banks such as Axis, HDFC Bank, SBI and Yes Bank. Its gateway arm got the RBI's final payment aggregator authorisation in November 2025. Global X-Pay wallets play a small role: Google Pay in India is a UPI app, and the RBI is still piloting the digital rupee (e₹), its CBDC.
Digital wallets and X-Pay in India
PhonePe
UPI app
India's largest UPI app, used for P2P transfers, QR payments in stores, bill payments and in-app checkout, with its own merchant payment gateway.
45.6% of UPI transaction volume in August 2026, NPCI data via StartupTalky
Google Pay
UPI app
Google's payment app in India runs on UPI, with bank accounts and RuPay credit cards linked for QR, online and bill payments.
32.3% of UPI transaction volume in August 2026, NPCI data via StartupTalky
Paytm
UPI app and wallet
The pioneer of mobile payments in India, now running UPI through partner banks after the 2024 RBI action on Paytm Payments Bank; it also offers QR soundboxes and a licensed payment gateway.
8.0% of UPI transaction volume in August 2026, NPCI data via StartupTalky
Amazon Pay
Wallet and UPI
Amazon's wallet, UPI handle and pay-later service in India, used on Amazon.in and at partner merchants online and offline.
MobiKwik
PPI wallet
A listed Indian fintech offering a prepaid wallet, UPI payments, pay-later credit and merchant acquiring, accepted at many online merchants.
Rs 58,700 crore payments GMV in April to June 2026 (Q1 FY27), with a 193 million user base, YourStory
Payments in India: FAQ
What is the most popular payment method in India?
UPI, by far. The RBI counted 24.5 billion UPI transactions in August 2026, against 632 million credit card and 104 million debit card payments. Shoppers pay through apps such as PhonePe, Google Pay and Paytm.
Is UPI free for merchants?
Yes for now, but not for long. NPCI has announced a 0.4% fee capped at Rs 300 on merchant payments above Rs 2,000, with flat Rs 5 fees for categories such as fuel and insurance. Payments up to Rs 2,000 and small merchants receiving up to Rs 1 lakh a month by QR code stay exempt. The fee was due on October 15, 2026, but NPCI deferred it until after Diwali.
Is cash on delivery still common in India?
Yes. Logistics platform ClickPost found that only 41% of e-commerce orders were prepaid in 2025, and just 34.5% in Tier III markets. Many couriers now accept UPI at the door.
Can merchants store card numbers in India?
No. Since the RBI deadline of September 30, 2022, merchants and gateways cannot store card data and must use card-on-file tokens issued through the card networks and banks. Recurring card payments also require e-mandates.
Accept local payments in India with NORBr
In India, RBI-authorized payment aggregators bundle UPI, cards, net banking and wallets, while HDFC Bank, ICICI Bank and Axis Bank lead card acquiring. A PSP, PayFac, ISO or ISV should check RBI licenses, UPI success rates, e-mandates and settlement times.
With NORBr, you can connect any acquirer, PSP or local provider that offers UPI, RuPay cards, net banking, card EMI and wallets such as PhonePe and Paytm. Some are already in our connector catalog; Mapper™ gets the others live in days, and Smart Checkout shows each shopper the right methods. Explore the other #PayWorldTour guides.
Local payment providers in India
Razorpay
Payment gateway
A Bengaluru-founded payment aggregator serving startups to large enterprises with checkout, payment links, subscriptions and POS; it reportedly received a cross-border payment aggregator license in December 2025.
Covers: Cards, RuPay, UPI, UPI AutoPay, net banking, wallets, card and cardless EMI, pay later
PayU India
Payment gateway
One of India's oldest online payment aggregators, owned by Prosus, serving large merchants and SMBs, with the LazyPay credit product in the same group.
Covers: Cards, RuPay, UPI, net banking, wallets, EMI, LazyPay
Cashfree Payments
Payment gateway
A Bengaluru-based gateway known for payouts and collections, holding RBI licenses as a payment aggregator, cross-border aggregator and PPI issuer.
Rs 967.4 crore revenue from operations in FY26, up 51%, HDFC Sky
Covers: Cards, RuPay, UPI, UPI AutoPay, net banking, wallets, EMI, pay later, payouts
Juspay
Payment orchestration
A Bengaluru-based orchestration and checkout provider used by large merchants and banks to route payments across gateways, with its UPI 360 stack for UPI flows.
300 million+ transactions a day and above $1 trillion annualized TPV in January 2026, Juspay
Covers: UPI, cards, net banking, wallets, EMI through connected gateways
PhonePe Payment Gateway
Payment gateway
The merchant arm of India's largest UPI app, offering online checkout and in-store QR acceptance with fast UPI intent flows into the PhonePe app.
Covers: UPI, PhonePe, cards, net banking, wallets
CCAvenue
Payment gateway
One of India's first payment gateways, run by the listed group formerly known as Infibeam Avenues (now AvenuesAI), serving SMBs, enterprises and government bodies with a wide catalog of banks and wallets.
Covers: Cards, RuPay, UPI, net banking, wallets, EMI, recurring billing
BillDesk
Payment gateway
A Mumbai-based gateway long used by banks, utilities, insurers and government bodies for bill payments, collections and recurring mandates.
Covers: Cards, RuPay, UPI, net banking, wallets, e-mandates, BBPS bill payments
