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28. June 2026
India Set To Revolutionize Payments With Ai-Powered Upi: One Billion Daily Transactions On Horizon
India’s Payments Chief Reveals Plan to Reach Billion Daily Transactions with AI-Powered UPI
The National Payments Corporation of India (NPCI) has been steadily growing in popularity since its launch in 2016. Over 750 million daily transactions are currently conducted through the platform, and NPCI CEO Dilip Asbe is confident that artificial intelligence will play a crucial role in reaching the one-billion mark.
Asbe shared his vision for UPI’s future at Mumbai Tech Week, highlighting the potential of AI to drive growth through fraud detection, credit distribution, and multilingual voice onboarding. “AI will be used very effectively when we look at the next wave of UPI,” he said. “We must use AI effectively to protect our current citizens, to find fraud, and to provide credit to all users and merchants who have digital footprints.”
NPCI launched a voice assistant-based payment system in 2023, but adoption has been slower than expected. Asbe acknowledged that voice models need to be more accurate before they can become a critical component of the payment ecosystem. However, he sees an opportunity for Indian companies, banks, and fintechs to create small language models tailored to local languages and use cases.
The NPCI already has a model called FIMI in place to resolve user disputes, which serves over a million users for cancelling mandates and resolving issues. Asbe believes that this is just the beginning, and he envisions a future where Indian companies can develop sophisticated AI-powered solutions to enhance the UPI experience.
On regulation, Asbe emphasizes the importance of protecting users while still allowing for innovation. He suggests implementing systems that can trace user instructions and consent if something goes wrong with an AI agent. NPCI has already demonstrated agentic commerce and payments with Razorpay last year.
Despite the growth of UPI, the market remains heavily concentrated. PhonePe and Google Pay control over 80% of transaction share, leaving little room for new entrants. Asbe notes that switching costs between apps are low, which may contribute to this concentration. However, he believes that as a viable commercial model becomes available, newer players will start investing heavily in the ecosystem.
NPCI’s own app, BHIM, holds roughly 1% market share despite growing transaction volumes. While there is no specific target for BHIM, Asbe wants the app to serve as a sovereign and secure alternative.
The potential of AI-powered UPI has significant implications for India’s economic growth. With the country poised to become one of the world’s leading fintech hubs, NPCI’s vision for a billion daily transactions is not only ambitious but also necessary. By leveraging AI and data analytics, NPCI can create a more efficient, secure, and inclusive payment ecosystem that benefits both users and merchants.
Asbe’s comments highlight the importance of collaboration between industry stakeholders, policymakers, and regulators to drive innovation while ensuring user protection. The next phase of UPI’s growth will be shaped by the intersection of technology, policy, and societal needs.
In recent weeks, India has been debating its AI sovereignty more intensely, with proposals for a $5 billion annual sovereign AI fund and calls to build small language models tailored to local languages and use cases. Asbe sees an opportunity for Indian companies to create customized solutions that meet the unique needs of their users.
The NPCI’s vision for UPI is not only about reaching new heights but also about building a secure and inclusive financial landscape. By harnessing the power of AI, NPCI can unlock new opportunities for financial inclusion, innovation, and economic growth.
India’s digital economy continues to scale toward its largest-ever tech IPOs and $110 billion AI infrastructure plans, with NPCI aiming to position BHIM as a key player in this growth. Asbe believes that by embracing AI, NPCI can foster a vibrant ecosystem that promotes innovation and inclusivity.