Is UPI the new oil? Nikhil Kamath pitches India's payments system as the next game changer in geopolitics

Zerodha co-founder Nikhil Kamath has praised India's Unified Payments System (UPI), comparing it to oil, which has played a significant role in shaping geopolitics.

In a post on the social media platform X, Kamath wrote, “If oil has shaped geopolitics, can payments protocols do it too? An India-made standard other countries plug into is soft power by design. Should UPI be an export, not just a success?”

He further mentioned various factors, such as UPI's footprint, global reach, and several other factors, to highlight the growing significance of India's payments system.

UPI surpasses Visa

Recently, UPI has overtaken Visa in terms of daily transaction volume with 65 crore transactions in a day. Notably, UPI accomplished this milestone in just 9 years since its launch.

UPI footprint

According to data shared by Kamath, UPI usage is highest in digitally connected urban and tourism-led regions. Cities and union territories such as Delhi, Chandigarh, Telangana, Goa, Karnataka, Maharashtra, Arunachal Pradesh, Haryana, Ladakh and Sikkim have recorded the highest number of UPI transactions per person in September 2025.

Global reach

Apart from Indian states, countries such as Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, the UAE, and Qatar currently accept UPI payments.

Surge after COVID-19 pandemic

The usage of UPI increased tremendously during the COVID-19 pandemic, when people had to switch to digital payment options to follow social distancing protocols. The volume of UPI usage rose from ₹25 crore in June 2017 to ₹1,840 crore.

India is the world's largest payments market

Owing to UPI's success, India has become the largest payments market in the world, with 129.3 billion transactions, marking over 44% year-on-year growth. It is followed by Brazil with 37.4 billion transactions. Notably, India processes more real-time payments than 10 markets combined, Kamath wrote.

UPI constitutes around 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 cards, credit cards and others.

According to a recent IMF report titled Growing Retail Digital Payments: The Value of Interoperability, India has become a global leader in fast payments. The key driver of this shift is UPI, introduced in 2016 by the National Payments Corporation of India, which has revolutionised the way Indians transfer money.

Netizens react

Several social media users responded to Kamath's post, where most people agreed with the comparison of UPI with oil, calling it India's soft power.

One of the users wrote, “UPI isn’t just a payment system anymore - it’s a symbol of India’s tech strength. Making it global would be real soft power.”

Another added, “Totally agreed ! UPI has potential but I am still wondering about plans to monetize this technology. why we are not making patent of this and selling worldwide like other tech giants have done earlier.”

A user said, “Nikhil Kamath Sir The idea of UPI as not just a domestic success but a geopolitical tool is compelling. Exporting a payments protocol could indeed extend India’s influence, creating economic ecosystems that foster closer international ties. It also raises interesting questions about data sovereignty and interoperability standards on a global scale.”

“UPI is such a strong example of how innovation from India can impact the world. The idea of making it a global export truly shows how technology can become soft power,” another user added.

Lauding Kamath post, a user wrote, “Absolutely. Payments protocols are the new geopolitical oil. Oil controlled supply and access; UPI controls data flow, transaction cost, and financial inclusion. Exporting UPI isn't just about tech success; it’s about offering an alternative to closed networks, giving nations digital sovereignty, and building India's deepest form of soft power. It must be an export.”