The Unified Payments Interface (UPI) processed 218.6 billion transactions in FY26 up to February, with a total value of ₹284.7 lakh crore, according to data from the National Payments Corporation of India (NPCI).
Monthly volumes stayed above 18 billion throughout the year and crossed 20 billion in several months, indicating continued high usage across retail payments.
Transaction activity was highest in January at 21.7 billion, followed by December at 21.6 billion and October at 20.7 billion.
In value terms, January also recorded the highest throughput at ₹28.33 lakh crore. The period coincided with higher spending during festivals and year-end settlements.
After the December-January peak, both volume and value showed some easing. February recorded 20.3 billion transactions, while value declined to ₹26.84 lakh crore.
This will be a slowdown compared to the preceding months, although levels remain above those seen in the first half of the fiscal year.
Volumes rose steadily from 17.9 billion in April 2025 to 19.6 billion in September. The second half saw consistent crossing of the 20-billion mark.
Transaction values followed a similar pattern, moving from ₹23.9 lakh crore in April to a range of ₹27-28 lakh crore during peak months.
As per news reports, Paytm continued to account for the majority of UPI transactions. At the same time, newer players such as Navi, Super.money, and BHIM are attempting to increase their share.
Apple is also in discussions with ICICI Bank, HDFC Bank, and Axis Bank to introduce Apple Pay, though pricing remains a constraint in a low-cost ecosystem.
The digital payments ecosystem has received around ₹8,000 crore in subsidies over the past 4 years for UPI and RuPay debit card transactions, against a higher allocation. In FY25, around ₹1,000 crore was disbursed for UPI merchant transactions.
A parliamentary panel has suggested a graded merchant discount rate (MDR) framework, though no change has been implemented so far.
UPI continued to process high transaction volumes in FY26, with data indicating stable usage levels alongside some moderation towards the end of the period.
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Published on: Apr 1, 2026, 3:27 PM IST
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