India’s digital payment landscape in 2025 is characterized by a diverse array of methods catering to various transaction needs. From traditional bank transfers like NEFT and RTGS to instant payment systems such as UPI and IMPS, the country has embraced multiple avenues to facilitate seamless financial transactions. The proliferation of digital wallets, neobanks, and Buy Now, Pay Later (BNPL) services further underscores the nation’s commitment to financial inclusion and technological advancement. This comprehensive guide delves into the various payment methods prevalent in India today, exploring their evolution, adoption, and the role they play in shaping the country’s dynamic financial ecosystem.
Payment by card in India
In 2025, card payments remain a significant payment method in India, especially for high-value purchases, business transactions, and in sectors such as travel, hospitality, and healthcare. Cards are commonly used in urban areas, although their share continues to decline as UPI gains dominance.
According to the Reserve Bank of India, over 1.3 billion cards are currently in circulation, including approximately 1.1 billion debit cards and 200 million credit cards. Contactless card usage is increasing, particularly in metro cities, supported by widespread NFC terminal adoption.
The three main card networks operating in India are:
- RuPay: Launched by NPCI, RuPay now accounts for over 65% of debit card market share by volume. It also supports credit card issuance and UPI credit linkages.
- Visa and Mastercard: These international networks remain widely accepted, especially for cross-border payments and travel spending. However, domestic transaction volumes are decreasing as public institutions promote RuPay.
Notable innovations include linking credit cards (especially RuPay) with UPI and issuing prepaid cards for financial inclusion.
Card Payment Methods in 2025:
 RuPay – India’s domestic card network, widely used for debit and now credit. Linked with UPI for credit transactions.
 Visa – Global card network. Still dominant for international and online purchases.
 Mastercard – Similar to Visa, with broad usage but declining in domestic preference.
American Express – Premium network, mainly for affluent users and travelers.
 Diners Club – Used in niche corporate or travel segments.
 Discover – Accepted at limited Indian POS terminals, mainly via international usage.
Branded bank cards: Cards issued by banks like ICICI, HDFC, SBI across all networks, popular for cashback and reward programs.
Payment by cash
- Day-to-day purchases in tier-2 and tier-3 cities
- Wages in the informal economy
- Religious donations, micro-retail, and public transport
Urban centers have seen a drop in cash usage due to QR code acceptance and digital wallet proliferation, but full transition is not yet achieved.
Cash Usage Modalities in 2025:
- Physical cash: Notes and coins issued by the RBI; widely used, especially where digital penetration is low.
- ATM withdrawals: Still common, though declining in cities with better digital adoption.
- Cash on Delivery (CoD): Preferred by users who lack trust in online prepayment or don’t use digital tools.
Payment by bank transfer
India’s digital payment ecosystem has experienced unprecedented growth, positioning the country as a global leader in real-time payment systems. This transformation is driven by widespread smartphone adoption, affordable internet access, and proactive regulatory frameworks. The Reserve Bank of India’s (RBI) “Payments Vision 2025” emphasizes the goals of safe, secure, and efficient payment systems to support financial inclusion and economic development.
The Unified Payments Interface (UPI), launched in 2016 by the National Payments Corporation of India (NPCI), has become the cornerstone of India’s digital payment infrastructure. In March 2025, UPI recorded over 18.3 billion transactions worth ₹24.77 trillion, marking a significant 13% increase in value compared to the previous month. UPI’s interoperability allows users to link multiple bank accounts to a single mobile application, facilitating seamless peer-to-peer (P2P) and peer-to-merchant (P2M) transactions.
Complementing UPI, the Immediate Payment Service (IMPS), operational since 2010, enables instant 24×7 interbank electronic fund transfers through mobile phones, internet banking, and ATMs. As of March 2025, IMPS recorded transaction values amounting to ₹6.67 trillion, reflecting a significant increase from previous years.
The National Electronic Funds Transfer (NEFT) system facilitates one-to-one funds transfers and has been available 24×7 since December 2019. NEFT operates in half-hourly batches, allowing individuals and businesses to transfer funds across banks in India. By January 2025, the average daily transaction value on NEFT doubled from ₹600 billion in 2020 to ₹1.2 trillion.
For high-value transactions, the Real-Time Gross Settlement (RTGS) system provides real-time settlement of funds, ensuring immediate credit to the beneficiary’s account. In 2024, the value of RTGS transactions increased by 39.6% from ₹1,388.67 trillion in 2019 to ₹1,938.21 trillion.
Collectively, these payment systems have significantly reduced reliance on cash, enhanced financial inclusion, and contributed to the formalization of the economy.
Bank Transfer options in 2025:
Unified Payments Interface (UPI) – (C2C, B2C, B2B) India’s leading real-time payment system, facilitating instant interbank transfers via mobile devices, with over 18.3 billion transactions worth ₹24.77 trillion in March 2025.
Immediate Payment Service (IMPS) – (C2C, B2C) Provides instant 24×7 interbank electronic fund transfers through various channels, recording ₹6.67 trillion in transaction value as of March 2025.
National Electronic Funds Transfer (NEFT) – (B2B, B2C) A nation-wide payment system operating in half-hourly batches, with average daily transaction values reaching ₹1.2 trillion by January 2025.
Real-Time Gross Settlement (RTGS) – (B2B, B2C) Designed for high-value transactions with real-time settlement, the value of RTGS transactions increased to ₹1,938.21 trillion in 2024.
Active Neobanks in India in 2025:
Jupiter – (B2C) A digital-first neobank offering personalized financial insights and seamless transactions, targeting Millennials and Gen Z.
Fi Money – (B2C) Provides a comprehensive financial ecosystem with features like P2P payments, fund transfers, and investment tools, catering to salaried individuals and students.
Fyp – (B2C) A neobank designed for teenagers, offering a prepaid card and app to manage finances, promoting financial literacy among the youth.
InstantPay – (B2B, B2C) Offers full-stack digital banking solutions for individuals and businesses, including instant account opening, cash deposits, and utility payments.
Mool – (B2C) Focuses on wealth management and savings, providing users with smart savings accounts, investment options, and tailored financial insights.
Freo – (B2C)
India’s first credit-led neobank, offering digital savings accounts, credit lines, and BNPL services, targeting millennials and young adults.
FamPay – (B2C) India’s first neobank for teenagers, enabling online and offline payments through a numberless card and app, without the need for a traditional bank account.
Payment by installment and BNPL
Installment payments and Buy Now Pay Later (BNPL) options are widely used in India, especially for online purchases and high-value goods. In early 2025, the BNPL market in India is valued at $12 billion and is projected to reach $20 billion by 2027 .
These services allow consumers to spread payments over time. Some are interest-free and repaid within 15–90 days (BNPL), while others are EMIs offered by banks and credit card issuers for longer periods (typically 3 to 24 months).
According to BusinessWire, over 80 million Indians have used a BNPL or EMI service at least once by 2025. Electronics, fashion, groceries, travel, healthcare, and education are the top sectors. Approximately 35% of all online electronics purchases in India involve either BNPL or EMI.
In 2023, the Reserve Bank of India introduced tighter rules for digital lending. BNPL providers must now follow stricter KYC procedures and give users clearer information on repayment terms.
Installment and BNPL options in 2025:
Axio (formerly Capital Float) – (B2C) Acquired by Amazon in January 2025; BNPL integrated into Amazon India checkout.
Simpl – (B2C) Offers instant pay-later services with over 20,000 merchant partners.
LazyPay – (B2C) Provides short-term credit with easy repayment via app.
Kissht – (B2C) Targets electronics and healthcare sectors with instant loan approval (Business Today).
ePayLater – (B2C) BNPL solution used for travel and fuel.
KreditBee – (B2C) Offers personal loans and small-ticket credit via mobile.
Uni – (B2C) Popular among young professionals with 1/3 monthly payment card.
Flexmoney –(B2B) Powers InstaCred, a merchant-facing BNPL infrastructure.
Slice – (B2C) Offers a flexible Visa-powered BNPL card.
 Amazon Pay Later – (B2C) Allows deferred payments for Amazon customers.
Flipkart Pay Later – (B2C) One-click pay later option for Flipkart users.
Paytm Postpaid – (B2C) Hybrid product combining wallet and credit line (ET Wealth).
Mobikwik Zip – (B2C) Offers cashback and flexible repayment.
PostPe (BharatPe) – (B2C) Provides credit line up to ₹10 lakh for purchases (rupifi.com).
Rupifi – (B2B) B2B BNPL provider for SME suppliers.
ShopSe – (B2B) Works with offline merchants to enable instant EMIs.
Dhani OneFreedom – (B2C) Mixes BNPL with e-commerce and health access.
Pine Labs – (B2B) Pine Labs is preparing for a $1 billion IPO in the second half of 2025, offering merchant BNPL and POS financing solutions.
Zest – ZestMoney ceased operations in December 2023 due to regulatory challenges and failed acquisition attempts.
HDFC FlexiPay (B2C) / 
ICICI PayLater (B2C)/ 
FreeCharge Pay Later (B2C) – Bank-driven EMI products linked to existing accounts.
Payment by digital wallet and X-Pay
Digital wallets have become an integral part of India’s payment ecosystem, driven by widespread smartphone adoption, affordable internet access, and government initiatives promoting a cashless economy. In 2024, the Indian digital wallet market was valued at approximately USD 17.6 billion, with projections estimating growth to USD 66.4 billion by 2034, reflecting a CAGR of 14.2% .
By 2025, India leads globally in digital wallet adoption, with over 90% of consumers utilizing these platforms. The surge is attributed to the convenience of quick transactions, cashback incentives, and seamless integration with various services. Notably, UPI-based wallets have revolutionized peer-to-peer and merchant payments, offering real-time bank transfers without the need for preloaded balances.
The market is characterized by the emergence of “super apps”—platforms that extend beyond payments to include services like bill payments, insurance, investments, and e-commerce. For instance, PhonePe, with over 590 million registered users, processes more than 310 million transactions daily and holds a 48.4% share in UPI payments as of January 2025.
E-Wallet options in 2025:
Paytm – (B2C, B2B) Despite regulatory challenges, Paytm continues to offer wallet services, facilitating bill payments, recharges, and in-store transactions.
Google Pay – (B2C, B2B) Known for its user-friendly interface, it supports UPI transactions and integrates with various financial services.
Amazon Pay – (B2C, B2B) Integrated within the Amazon ecosystem, it offers seamless payment options for online shopping and utility bills.Claight
MobiKwik – (B2C, B2B) Provides a range of services, including bill payments, recharges, and a BNPL feature called “MobiKwik Zip.”
FreeCharge – (B2C, B2B) Offers services like bill payments, recharges, and a digital wallet for seamless transactions.
BHIM – (C2C) A government-backed app facilitating UPI transactions, promoting digital payments across various demographics.
Airtel Money – (B2C, B2B) Operated by Airtel Payments Bank, it allows users to make payments, transfer money, and access banking services.
Jio Payments Bank – (B2C) Offers digital banking services, including a wallet feature for quick transactions.
PayZapp – (B2C) HDFC Bank’s PayZapp provides digital wallet services for bill payments, mobile recharges, and online shopping.
Yes Bank Wallet – (B2C) Offers digital wallet services, including participation in the e₹ (e-rupee) initiative in collaboration with the Reserve Bank of India.
Dhani Wallet – (B2C) Facilitates online bill payments, mobile recharges, and bookings for its users.
PhonePe – (B2C, B2B2C) A leading digital payment platform with a vast user base and extensive merchant network.
PayU Money – (B2B) Provides digital wallet services and has received RBI approval to operate as a payment aggregator.
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