UPI and Web3 wallets: India's digital payment platform

Does India's adoption of the Unified Payments Interface (UPI) signify the start of a new digital payment revolution? The potential is there. Web3 decentralized protocols and technologies offer individuals more control over their data, identities, and transactions, which could be the next step in the evolution of the internet. With India's evolving digital payment infrastructure, the country is well-positioned to take advantage of the possibilities of decentralization.

UPI is a real-time payment system that's democratized digital transactions, becoming a cornerstone of India's fintech ecosystem. India's enthusiastic adoption of UPI for everyday payments indicates its willingness to investigate and adopt new technologies like Web3.

This combination of the existing digital infrastructure with the promise of Web3 has awesome potential, suggesting India is taking a leading role in forming the worldwide digital infrastructure of the future.


  • UPI, a real-time payment system, has significantly impacted India's transition towards a cashless society.

  • India’s crypto adoption journey is marked by regulatory challenges and the rise of homegrown crypto exchanges.

  • Synergy between UPI and Web3 wallets facilitates rapid, secure transactions, bridging traditional and crypto economies.

  • Various crypto platforms have integrated UPI, promoting easier access to digital assets for Indian users.

  • UPI's integration with crypto and Web3 technology could help address financial exclusion in India and globally.

What is UPI?

India's Unified Payments Interface (UPI) illustrates the nation's fast development in fintech technology. Established almost seven years ago, UPI has drastically changed the principles of digital payments in India. This instantaneous system lets you quickly move money from one bank account to another, streamlining dealings between firms and shoppers or even between people.

In the relatively short time since its inception, UPI has accumulated an impressive user base of 260 million out of India's 1.4 billion people. Its popularity can be attributed to its ease of use and extraordinary ability to communicate with other services.

UPI's user-friendly qualities greatly accelerated India's transformation into a cashless society. Part of that transformation includes popular apps we use in our day-to-day lives that leverage UPI. They include:

  • PhonePe

  • Google Pay

  • Paytm Payments Bank app

  • Cred

  • Amazon Pay

  • Axis Bank apps

The Mastercard 2022 New Payments Index revealed that an impressive 93% of the Indian population had used cashless payment methods during the prior year. There's also a UPI Lite version, for those looking to send smaller transactions without internet connection.

UPI looks to be on the brink of revolutionizing cross-border transactions. Through collaboration with other nations, such as the UAE, and platforms such as Singapore’s PayNow, UPI is seeking to become a worldwide payment system. Its impact on the global digital payment system will inevitably be profound as UPI progresses. Could India be paving the way for an improved international payment infrastructure?

India's crypto journey so far

As crypto adoption continues, it's left a significant imprint on India's financial landscape, charting a journey from curiosity to mainstream acceptance. In recent years, decentralized digital assets have become increasingly popular with millions of Indians, prompting the emergence of a large community of crypto curious and traders.

YES Bank has implemented UPI interoperability on the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC) app. This integration allows users to seamlessly scan any UPI QR code through the YES Bank Digital Rupee app and perform transactions. The move is part of YES Bank's efforts to redefine digital transaction journeys for its customers, expanding the reach and usability of the Digital Rupee across different platforms.

The initial wave of crypto adoption in India was characterized by an appetite for innovation. Digital assets have become a topic of household discussions, and the growing interest has given rise to numerous homegrown crypto exchanges like:

  • WazirX

  • CoinDCX

  • ZebPay

These platforms opened up an easy way for Indians to explore crypto trading, providing a broad selection of digital assets and allowing seamless transactions. Much like elsewhere, cryptocurrency's journey in India has been filled with a series of ups and downs. Among the most significant hurdles:

  • Regulatory uncertainties: These doubts frequently overshadow the crypto ecosystem's potential. The Reserve Bank of India (RBI), the country's central banking authority, was extremely vocal on this matter.

The RBI was concerned about digital currencies' financial, legal, and security risks. This is common across central banks worldwide. As a result, the RBI made a significant move:

  • Banking ban: In 2018, the RBI imposed a temporary banking ban on crypto transactions, signaling its apprehensive stance.

However, in a significant legal twist, the Supreme Court of India intervened.

  • Ban lifted: In 2020, the RBI's ban on cryptocurrencies was lifted. This was a big moment for the India crypto community, but there's still much uncertainty. Policy discussions and a clear legal framework for cryptocurrencies are still needed.

Behind this backdrop, the role of Indian crypto exchanges can't be understated. These entities haven't just been trading platforms but beacons of resilience. They have:

  • Advocated for clarity: Beyond facilitating the buying and selling of digital assets, they've been strong advocates for clear regulations.

These exchanges help people understand crypto by explaining it well and promoting awareness. They do so through strong security measures, user-friendly interfaces, and educational programs. This has helped the Indian crypto community to grow and mature.

There are challenges, but the future is promising. India is progressing with crypto, and how exchanges innovate and regulate will be key. The story of how India manages innovation and regulation will show how agile the country is.

UPI and Web3 wallets

UPI for transactions gives an incredibly significant advantage over rapid transfers. This quickness is essential for people and businesses, providing instantaneous access to digital assets. With crypto being highly volatile, swiftly transferring funds with a Web3 wallet can be beneficial.

The wallets and platforms include:

  • OKX: You can purchase digital assets on OKX P2P marketplace using UPI as your payment method.

  • WazirX: WazirX offers UPI among its multiple deposit methods.

  • Okto: Okto is CoinDCX's wallet. It uses Transak for on-ramps.

  • Yuse Wallet: Yuse Wallet partnered with a Netherlands-based business to bring UPI integration to India, simplifying crypto transactions.

  • Binance: Binance allows its users to acquire digital currencies by using UPI as a form of payment.

  • MetaMask: MetaMask joined forces with to introduce UPI, which makes it easier for people from India to buy and sell cryptocurrencies. This integration provided Indian users with simpler access to Ethereum, Polygon, and BNB networks.

  • ZebPay: After the RBI ban was lifted, ZebPay reintroduced INR deposits and withdrawals with UPI as a main option.

UPI and security UPI has created an effective structure that can be expanded to cover both fiat-crypto transactions. It employs two-factor verification (2FA) to improve safety by demanding two means of identification before processing. The traceability of deals completed through UPI provides an extra layer of security and accountability, which is essential in crypto where anonymity is the norm.

UPI is helping to bridge the gap between fiat and crypto by addressing the most common issues of speed, cost, ease of use, and security. UPI can drive mainstream adoption of cryptocurrencies with its cost-effective, secure platform. It combines traditional methods with Web3 technology, providing an all-around experience with digital assets.

Crypto friendly UPI platforms

UPI for transactions gives an incredibly significant advantage of rapid transfers. This quickness is essential for people and businesses, providing instant access to digital assets. With crypto being highly volatile, swiftly transferring funds with a Web3 wallet can be beneficial.

OnRamp Money

OnRamp Money provides a convenient and cost-efficient service for exchanging fiat currency and cryptocurrencies.


Onramp Money offers its users diverse options, enabling them to access over 20 blockchain networks such as Ethereum, Arbitrum, Avalanche, Optimism, Solana, TRON, and more.

OnMeta provides decentralized apps (DApps) with APIs and widget integrations to make cryptocurrency transactions more accessible for users.


OnMeta offers versatile on-ramp and off-ramp solutions to the top blockchains, including Ethereum, zkEVM, zkSyncEra, Polygon, BNB Chain, and more.


Transak enables seamless fiat-to-crypto transitions via UPI in India, offering services that cater to Indian users by providing localized payment solutions, aiding in the broader adoption of cryptocurrencies.


Transak supports the following chains: Ethereum, Polygon zkEVM, zkSync Era, Linea, Base, BNB Chain, Arbitrum, and more. These chains help cater to a wide range of digital assets and DApps.


AlchemyPay has significantly supported cryptocurrency transactions in India through its integration with the UPI.


AlchemyPay connects to blockchains to let users participate in DApps, and connects digital assets and fiat money. The platform also connects to Ethereum, Binance Smart Chain, TRON, Avalanche, and VeChain so users can buy TrueUSD (TUSD) with fiat money.

UPI challenges and opportunities

Witnessing UPI connecting to wallets, DApps, and chains is an exciting experience, yet this integration presents unique obstacles and opportunities to consider.

The legal status of UPI-crypto combinations is still being determined. To guarantee that blending UPI with cryptocurrency agrees with valid legislation, it's essential to have clear and thorough rules in place. This transparency will help create trust among users and provide a welcoming atmosphere for the development and longevity of digital assets.

To comply with regulations in India, especially when dealing with Indian Rupee (INR) payments, a cryptocurrency company needs to obtain a license or approval from the Financial Intelligence Unit (FIU). This step is crucial to make sure the company adheres to the financial standards and legal frameworks set by the Indian authorities, promoting safe and lawful operations within the country's financial ecosystem.

The future capacity of UPI systems is a serious consideration. The possible surge of crypto curious and natives could overwhelm the present UPI infrastructure. Taking care of scalability issues quickly will help guarantee the system is solid and capable of managing greater transaction amounts competently, providing a seamless user experience.

The introduction of UPI and crypto has enabled decentralized finance (DeFi) in India, giving users a straightforward way to purchase crypto with fiat. This has furthered the acceptance and usage of DeFi platforms.

The arrival of Web3 technology, which is based on blockchain, has the potential to provide the unbanked population with access to financial services. UPI could connect the traditional financial system and the Web3 framework, allowing the unbanked to access essential financial services. This integration could reduce financial exclusion, propel economic growth, and boost digital asset understanding among the general population.

The final word

India has made considerable progress in fintech through the UPI, a real-time payment system critical in transitioning the country towards becoming a cashless society.

This system has attracted a massive user base and revolutionized domestic transactions. Now, UPI is on the brink of improving cross-border transactions, linking up with other countries. India's cryptocurrency environment has also advanced, with regulatory obstacles gradually being replaced by more approval and local crypto exchanges pushing for better regulations.

The synergy of UPI and Web3 could address financial exclusion, bringing together fiat and DApps. As India navigates through the complexities of blending UPI with cryptocurrencies and Web3, could this bridge be the cornerstone for a globally inclusive financial ecosystem?

This article may cover content on products that are not available in your region. It is provided for general informational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed herein. It represents the personal views of the author(s) and it does not represent the views of OKX. It is not intended to provide advice of any kind, including but not limited to: (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets, or (iii) financial, accounting, legal, or tax advice. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. OKX Web3 features, including OKX Web3 Wallet and OKX NFT Marketplace, are subject to separate terms of service at
© 2023 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less of this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state:"This article is © 2023 OKX and is used with permission." Permitted excerpts must cite to the name of the article and include attribution, for example "Article Name, [author name if applicable], © 2023 OKX." No derivative works or other uses of this article are permitted.
Related articles
View more
View more