India’s Unified Payments Interface (UPI) continues its rapid growth, with transactions expected to reach 240 billion in FY26, marking a 30% increase year-on-year. Daily transactions have already crossed 800 million, highlighting strong adoption.
UPI Records 30% Growth, Daily Transactions Cross 800 Million Mark
New Delhi: India's digital payment system UPI (Unified Payments Interface) is continuously reaching new heights. The UPI transaction figure is estimated to reach 240 billion in the financial year 2026 (FY26), which is about 30 percent more than last year. Data from the National Payments Corporation of India (NPCI) confirms this rapid growth trend.
The use of UPI is increasing rapidly across the country. While total transactions were 131 billion in FY24, it increased to 185 billion in FY25. Now it is expected to cross the figure of 240 billion in FY26. Although this growth rate is slightly lower than last year's 41 percent, it clearly shows the growing trend of digital payments.
UPI has also set new records in terms of daily transactions. This fiscal saw an average of 657 million transactions per day, significantly higher than last year's 506 million. In the month of March, the figure of 800 million daily transactions was crossed for the first time. The target of the government and NPCI is to increase this to 1 billion per day, which seems possible soon given the current pace.
Amidst this rapid growth, digital payment companies are now seeking new revenue models from the government. They are demanding reintroduction of Merchant Discount Rate (MDR). Notably, the MDR of 0.3 percent on UPI was removed in 2020, after which companies depend on government subsidies.
Payment companies say that the current model is not sustainable in the long run. He suggested that MDR should be imposed on large traders with a turnover of more than Rs 40 lakh. This will provide a stable source of income to companies and strengthen the digital payment ecosystem.
This fast pace of UPI reflects the success of Digital India campaign in India. From small shopkeepers to large merchants, every segment is rapidly adopting digital payments. In coming time, UPI can make its strong identity not only in the country but also at the global level.
