UPI Growth and Its Impact on Debit and Credit Card Transactions in India

Author : Purvangi Dawar, Ritika Kumari

Abstract : The rapid growth of the Unified Payments Interface (UPI) has significantly transformed the digital payment landscape in India. Introduced to enable fast, secure, and real-time bank-to-bank transactions, UPI has become the most widely used digital payment method in the country. This study examines the impact of UPI growth on the usage patterns of traditional payment methods, specifically debit and credit cards. The research aims to understand whether UPI has replaced card-based payments or whether these payment modes continue to coexist for different transaction purposes. The study adopts a quantitative and descriptive research design. Primary data is collected through a structured Questionnaire survey administered to digital payment users across different demographic groups. Secondary data is sourced from official reports, academic studies, and industry publications. Data analysis involves percentage analysis, graphical representation, cross-tabulation, and chi-square testing to identify relationships between UPI usage and card payment behaviour. The preliminary findings suggest that UPI is the preferred mode for low-value and frequent transactions due to its convenience and speed. Debit card usage has declined for merchant payments and is largely limited to ATM withdrawals, while credit cards continue to be used for high-value purchases, rewards, and EMI facilities. The study highlights that UPI has not completely replaced card payments but has reshaped consumer payment behaviour in India.

Keywords : UPI, Digital Payments, Debit Cards, Credit Cards, Consumer Behaviour

Conference Name : International Conference on Digital Banking and Financial Technologies (ICDBFT-26)

Conference Place : Delhi, India

Conference Date : 7th Mar 2026