Payment trends have shifted rapidly; UPI is now preferred over cards, leaving credit and debit cards behind.

The landscape of digital payments in India is evolving rapidly. People are increasingly opting for UPI over credit and debit cards when making payments to merchants and businesses. This shift is clearly visible in the digital merchant payment market; UPI's market share is steadily rising, while the share of card-based payments is declining.

According to an Equirus report, UPI's share of digital payments made to merchants and businesses climbed to a record high of 77.3% in July. This figure stood at 74.9% in July of the previous year, while in June, UPI's share was 77.1%. This transition is occurring alongside the rapid expansion of India's digital merchant payment market. In July, the market grew by 19.6% year-on-year, reaching ₹11.7 lakh crore. In essence, the overall digital payment market is expanding, and UPI is capturing a significant portion of this growth.

**Decline in Credit Card Share**