11-12-2025 
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The Reserve Bank of India (RBI) has announced several upgrades to enhance and modernize the Unified Payments Interface (UPI) system, making digital payments more convenient for users. The RBI announced that UPI transactions will be possible through smart devices such as smartwatches and even cars. The goal of these upgrades is to simplify digital payments and make them more accessible to everyone.
One key feature is an artificial intelligence (AI)-driven voice authentication system that is eventually expected to support over 28 Indian languages. This advancement aims to increase the adoption of digital payments, particularly among non-English-speaking and rural users. The system, developed internally by the RBI, is designed to handle UPI-related issues and mandates efficiently.
At present, the feature is available in English, but support for Hindi and other Indian languages will be added soon. Users can check transaction statuses, file complaints, and track their progress through this platform. The system provides clear, step-by-step instructions, helping both customers and banks resolve issues more quickly and effectively.
“The Unified Payments Interface or UPI is [a] critical Digital Public Platform. It has transformed the payments landscape…Around 85% of the digital payment transactions in India today are carried out through UPI. About 20 billion transactions are made using UPI every month, representing a value equivalent to over 280 billion USD,” Sanjay Malhotra, Governor, Reserve Bank of India, recently said.
“A recent research study on the impact of UPI suggests that higher UPI adoption is associated with lower cash demand. Another study shows that a one percent increase in UPI transaction volumes correlates with a 0.03 percent increase in GDP growth,” Malhotra added. UPI has allowed close to 490 million unique users to make nearly 20 billion transactions every month, almost half of the global real-time payment volumes.
India’s central bank reported that in the first half of 2025, digital payments made up 99.8% of all transactions by volume. In value, digital transactions represented 97.7% of the total, amounting to an impressive ₹1,536 lakh crore (approximately $17.4 trillion) during the same period. UPI dominated the landscape, accounting for about 85% of all digital transactions by volume in the first half (H1) of 2025. According to the RBI, this surge is largely driven by UPI’s widespread adoption for low-value payments.
UPI adopts IoT for seamless payments
UPI is also adopting Internet of Things (IoT) technology to enable payments through connected smart devices, including watches, glasses, and even cars, in addition to smartphones. This innovation aims to make digital transactions faster and more convenient. With IoT-based payments, users no longer need to take out their phones to pay at gas stations, for groceries, or for other purchases. Instead, payments can be completed directly from connected devices, such as a car’s system, smartwatch, smart glasses, or even a smart TV. This advancement creates a seamless and effortless payment experience, marking a significant step toward the future of intelligent digital transactions.
“Digital Public Platforms are of immense importance for central banks. Central banks not only serve as the ultimate guardians of economic resilience. They, in many countries, are also responsible for enhancing financial inclusion and for operating and regulating critical payment and settlement infrastructure that form the backbone of modern economies… Development of fast payments systems (FPS) aligns with key public policy objectives, including creation of safe and efficient payment systems for everyone, reducing cash dependence, and supporting digitalisation,” Malhotra stated.
According to a report, the global cashless payments market size is projected to increase to about $295 billion by 2032 from roughly $152 billion in 2025, with a compound annual growth rate (CAGR) of almost 10% during the period. In 2024, North America held the largest market share in the cashless payments market, accounting for 35.24%.“Digital payment systems have decreased delivery costs, minimised revenue leakages, and facilitated rapid deployment of emergency relief programmes, particularly during the global COVID-19 pandemic,” the RBI chief informed.
Meta AI glasses to enable UPI payments in India
Cashing in on the UPI boom, Meta (NASDAQ: META) has announced that users in India will soon be able to make UPI QR-code payments of up to ₹1,000 ($11.28) directly through their Meta AI glasses. By simply looking at a QR code and saying, “Hey Meta, scan and pay,” users can complete transactions without needing to pull out their phone or wallet. Payments will be processed through the bank account linked to their WhatsApp, offering a faster and more seamless way to handle everyday purchases.
In January, the National Payments Corporation of India (NPCI) announced that Meta’s WhatsApp Pay, a payment feature that enables users to send and receive money directly within the WhatsApp chat interface, would be able to offer UPI services to its entire user base in India. As of December 2024, the instant messaging platform’s total Indian user base reportedly stood at about 596.6 million, which is the largest user base for Whatsapp in the world.
“Ray-Ban Meta glasses users in India will soon get access to a host of new Meta AI features and experiences designed to make their glasses even more useful, personal, and fun. From hands-free voice interactions and Hindi language support to UPI Lite payments and festive-inspired restyling of your photos, these updates bring useful, more localized capabilities to everyday life of users,” Meta said in a statement.
Ray-Ban Meta glasses will also offer full support for the Hindi language, making it easier for users to interact with Meta AI hands-free. This update enables users to ask questions, obtain information, take photos and videos, and answer calls and texts in Hindi. This update uses tools from Sarvam, one of the leading foundational model companies in India.
India has selected Sarvam AI, a local startup in generative artificial intelligence (AI), to create the nation’s first domestically developed foundational AI model, a significant leap in its pursuit of AI leadership.
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