India’s digital payment ecosystem is rapidly evolving, with new technologies making transactions faster, safer, and easier. UPI has become a key tool not just for everyday payments but also in moving India toward a fully digital financial system. Recently, NPCI announced some interesting innovations that shouldn’t be missed, both as a UPI user and as an investor.
In this article, let us explore the latest developments, take a closer look at the upcoming EMI-on-UPI feature, and understand how investors can benefit from these changes.
What’s Happening?
Following the introduction of RuPay credit cards and credit lines on UPI, NPCI is now working on the next big update that will allow users to convert their UPI payments into EMIs. This means consumers could soon split their UPI transactions into easy monthly installments while making payments.
The feature will function much like card payments at POS machines, where customers can choose to pay in EMIs instantly.
NPCI is planning to let fintech companies add a new EMI option that allows users to convert their UPI payments into monthly installments seamlessly. Paytm and Navi are already collaborating with banks to enable this option, and NPCI aims to use it to boost credit-based UPI transactions.
Read: UPI vs Credit Card: Which Option is Cheaper?
Fingerprint and Facial Recognition in UPI
The government is introducing a new UPI feature that will allow users to verify payments using fingerprints or facial recognition on their devices instead of entering a PIN. M. Nagaraju, Financial Services Secretary, announced this update at the Global Fintech Fest 2025. For now, such transactions will have a limit of Rs 5,000, which may be revised later after careful observation.
Aadhaar-based facial authentication will also allow users to set or reset their UPI PIN in a safer and easier way. Every transaction made through these new authentication methods will be verified by the issuing bank using secure cryptographic checks. If a user changes or resets their UPI PIN, banks must disable the biometric feature across all UPI apps to ensure safety.
UPI Surge in India
UPI has taken India’s digital payment revolution to new heights. Data from recent years clearly reflects its rapidly growing popularity.
In FY23, UPI recorded 0.84 lakh crore transactions worth Rs 138.01 lakh crore. By FY25, it set a new record with 1.86 lakh crore transactions valued at Rs 260.57 lakh crore.
In FY26 (till September), the volume has already reached 1.13 lakh crore transactions worth Rs 146.94 lakh crore, suggesting that this year could once again break previous records. This growing adoption of UPI continues to strengthen the Digital India vision and make the financial ecosystem more transparent and inclusive.
What’s in it for Investors?
These developments are set to further strengthen the UPI ecosystem, which already handles billions of transactions every month. Rising transaction volumes driven by the use of fingerprints or facial recognition mean more opportunities for payment gateways, fintech firms, and banks connected to UPI.
Additionally, the upcoming EMI-on-UPI feature will allow users to split payments into monthly installments, expanding access to credit without the need for a credit card. These steps also support the government’s vision of a cashless economy, creating long-term growth opportunities for the fintech, digital banking, and cybersecurity sectors.
What’s Next?
Starting October 8, UPI apps like PhonePe, Paytm, and GPay will offer biometric authentication for online payments. Users can choose fingerprints or facial recognition as a faster and more secure alternative to the 4-digit PIN. While NPCI has yet to officially announce detailed guidelines for the EMI-on-UPI feature, it is expected to roll out soon.
Additionally, NPCI has set up a new subsidiary, NPCI Tech Solutions Ltd (NTSL), to drive experimentation and breakthrough innovations in the fintech sector.
At the same time, India is preparing to launch its own digital currency backed by the Reserve Bank of India. According to Union Minister Piyush Goyal, this digital currency will function like regular money but in electronic form, marking another major step toward a fully digital financial system.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
