Is UPI the new oil? Nikhil Kamath pitches India’s payments system as the next game changer in geopolitics
Zerodha co-founder Nikhil Kamath praised India’s Unified Payments System (UPI), comparing it to oil, which plays an important role in shaping geopolitics.
In a post on social media platform
He also mentioned various factors like UPI’s footprint, global reach and some other factors to highlight the growing importance of India’s payments system.
UPI surpasses Visa
Recently, UPI surpassed Visa in terms of daily transaction volume by 65 crore transactions per day. It is noteworthy that UPI achieved this milestone in just 9 years since its launch.
UPI footprint
According to the data shared by Kamath, UPI usage is highest in digitally connected urban and tourism-oriented regions. Cities and union territories like Delhi, Chandigarh, Telangana, Goa, Karnataka, Maharashtra, Arunachal Pradesh, Haryana, Ladakh and Sikkim recorded the highest number of UPI transactions per capita in the month of September 2025.
global reach
Apart from Indian states, countries like Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, UAE and Qatar currently accept UPI payments.
Rise after the COVID-19 outbreak
UPI usage has increased tremendously during the COVID-19 pandemic, when people had to switch to digital payment options to follow social distancing protocols. UPI usage volume increased ₹25 crore in June 2017 ₹1,840 crore.
India is the world’s largest payments market
Thanks to the success of UPI, India has become the world’s largest payments market, with 129.3 billion transactions, growing at over 44% annually. Brazil follows it with 37.4 billion transactions. India, in particular, processes more real-time payments than ten markets combined, Kamath wrote.
UPI accounts for nearly 83% of digital transactions
In terms of payment modes in India, UPI has the highest share with 83% digital retail transactions, followed by other modes such as NEFT, RTGS, debit card, credit card and others.
According to a recent IMF report titled Growing Retail Digital Payments: The Value of Interoperability, India has become the world leader in fast payments. The main driver of this change is UPI, which was introduced by the National Payments Corporation of India in 2016. UPI has revolutionized the way Indians transfer money.
Netizens reacted
Many social media users responded to Kamath’s post; many agreed with the comparison of UPI with oil, describing it as India’s soft power.
One user wrote: “UPI is no longer just a payment system, it is a symbol of India’s technological prowess. Taking it global will be a real soft power.”
Another added: “I totally agree! UPI has potential but I’m still wondering about their plans to monetize this technology. Why don’t we patent it and sell it worldwide like other tech giants have done before.”
One user said: “Nikhil Kamath Sir the idea that UPI is not just a domestic success but also a geopolitical tool is intriguing. Exporting a payment protocol could indeed expand India’s influence and create economic ecosystems that foster closer international ties. This also raises interesting questions about data sovereignty and interoperability standards on a global scale.”
“UPI is a very strong example of how innovation in India can impact the world. The idea of turning this into a global export really shows how technology can turn into soft power,” added another user.
Praising Kamath’s post, one user wrote: “Absolutely. Payment protocols are the new geopolitical oil. Oil controlled supply and access; UPI controls data flow, transaction cost and financial inclusion. Exporting UPI is not just about technical achievement; it is about offering an alternative to closed networks, giving digital sovereignty to nations and building India’s deepest form of soft power. It should be an export.”
