The Reserve Bank of India (RBI) has confirmed a surge in digital payments in the first half of 2025, surpassing the previous year’s metrics, driven by the wholesale adoption of digital financial tools.
According to a report, India’s central bank disclosed that digital payments comprised 99.8% of total transaction volume in H1 2025. Digital payments accounted for 97.7% of total payment value in the first six months of 2025, pulling in a staggering Rs 1,536 lakh crore ($17.40) during the period under review.
A close look at the data revealed key insights into consumer behavior using digital payment tools in the country. In H1 2025, India’s Unified Payments Interface (UPI) pulled in the lion’s share of digital payments by transaction volume at 85% with the RBI citing its growing utility in small-value transactions.
However, the country’s Real Time Gross Settlement (RTGS) system raked in 69% of the total value of digital payment while accounting for only 0.1% in terms of volume. For context, UPI made up only 9% of digital payment volumes in H1 2026, while National Electronic Funds Transfer (NEFT) represented 15% of values.
“The lower average ticket size of UPI transactions indicates that UPI is used mainly for small value transactions,” read the RBI report.
Meanwhile, the central bank identified a significant uptick in the volume racked in by systems operated by the Clearing Corporation of India Limited (CCIL). Over the last six years, the RBI identified a similar surge in the value and volume processed in the government securities market.
Furthermore, forex clearing transactions surged from 1.66 million to surpass 2.63 million in the first half of 2025. India’s central bank noted that digital payment volumes in the country have been surging for over a decade, reaching a peak in 2025, resulting in a compound annual growth rate of 46% since 2020.
UPI to fuel short-term digital payment growth
Despite lagging in transaction values, experts are tipping UPI to accelerate digital payment growth in India. Over the last year, the solution has emerged as the most popular digital payment method among retail users, thanks to its speed and low settlement fees.
Keenly aware of its potential, authorities are racing to retrofit UPI with a raft of functionalities using emerging technologies, with cardless cash withdrawals set to debut in the coming months. Since 2023, UPI has been extending its reach across Southeast Asia and the Middle East with cross-border partnerships with Laos and Singapore.
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WHO revolutionizes payments for frontline health workers in Kenya
In other news, the World Health Organization (WHO) has struck a partnership with the Kenyan Ministry of Health to digitize payments for frontline health workers in the East African country.
The WHO Digital Finance Team is leading the efforts to revolutionize payments for healthcare practitioners in the country. The team has revealed a digital payment scheme tailored for health workers in remote regions of the country, significantly reducing delays in remuneration.
Under the new payment system, healthcare workers will be able to receive salaries in their mobile wallets in under 72 hours. Previously, it took an average of 15 days for workers to receive their salaries, and the WHO noted that the delays undermined morale and disrupted the polio outbreak response.
The Kenyan Ministry of Health backed the initiative by providing advanced coordination between local counties and service providers. Furthermore, the announcement confirmed a partnership with mobile money provider M-Pesa, offering an extensive reach to last-mile locations across Kenya.
Parties to the partnership launched a national Digital Payments Taskforce to oversee data collection and identity verification for frontline healthcare workers. However, the launch faced several headwinds, including a few cases of mismatched IDs and phone numbers. The system’s speed and efficiency, however, have driven adoption rates in weeks.
“The system is faster, more accurate, and limits duplication,” said Lucy Murutu, program assistant, WHO Kenya. “Counties have taken ownership, and frontline workers are motivated because they know payments will reach them on time.”
Since its launch, the WHO Digital Finance Team has noted that the new digital payment scheme has had a far-reaching impact on the healthcare sector. Over 120,000 frontline workers have been onboarded on a verified database with 127 Ministry of Health officials trained to oversee the process.
“The Ministry of Health played a key role in coordinating between counties and partners and ensuring smooth deployment,” said Sam Siboyi, digital finance lead, Ministry of Health of Kenya. “Kenya is ready for a digital shift in public health delivery.”
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Leading from the front with next-gen technologies
The WHO has turned to emerging technologies to improve its internal processes, mirroring its attempts to digitize the global health sector. It is increasing the size of its bet on artificial intelligence (AI) by launching a chatbot to answer public health-related inquiries.
Despite the push, the WHO has warned regulators of the dire risks posed by AI in healthcare if left to develop without proper regulation. Meanwhile, the WHO’s parent organization, the United Nations (UN), has unveiled a digital ID system to digitize payments for pensioners.
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Watch: Peer-to-peer electronic cash system—that’s micropayments
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