UPI Monthly Volumes Dip: Annual Growth Remains Strong

India’s Unified Payments Interface (UPI) recorded 20.39 billion transactions in February 2026, down from 21.70 billion in January, according to data released by the National Payments Corporation of India (NPCI).

Despite the month-on-month decline, transaction volumes were up 27% compared with February last year, reflecting sustained annual expansion. The sequential drop was largely due to February having fewer days, while underlying activity levels remained steady.

Transaction Value Falls Sequentially

In value terms, UPI transactions amounted to ₹26.84 lakh crore in February, compared with ₹28.33 lakh crore in January, a 5.3% decline over the previous month. However, on a year-on-year basis, transaction value increased 22%, indicating continued strength in digital payment adoption.

Daily Averages Show Continued Momentum

Average daily transaction volumes remained robust. February saw 728 million transactions per day, higher than January’s 700 million. The average daily transaction value also rose to ₹95,865 crore, up from ₹91,403 crore in the preceding month.

Comparison With Previous Months

For perspective, UPI processed 21.63 billion transactions worth ₹27.97 lakh crore in December 2025. This places February below both December and January in terms of total volume and overall transaction value.

Also Read: Gross GST Collections Increase to ₹1.83 Lakh Crore in February, Showing Steady Revenue Growth

PhonePe Leads UPI Ecosystem

In January, PhonePe continued to dominate the UPI ecosystem, accounting for 45.7% of total transaction volume and 48.6% of transaction value among UPI apps.

Google Pay held the second position with a 33.3% share by volume and 33.8% by value. Paytm ranked third, processing 1.66 billion transactions, translating into a 7.7% share of volume and 6.4% share of value.

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