UPI Growth has transformed India’s digital payments ecosystem over the past decade, with annual transactions rising from 1.78 crore in FY 2016-17 to more than 24,162 crore in FY 2025-26. Transaction value also increased from ₹0.07 lakh crore to around ₹314 lakh crore during the period.
The Unified Payments Interface (UPI) completes 10 years on August 25, 2026. The National Payments Corporation of India (NPCI) launched UPI in 2016 under the regulatory oversight of the Reserve Bank of India (RBI).
Over the past decade, UPI has become a key part of India’s digital payments infrastructure. It supports instant, interoperable payments between individuals and businesses.
The platform has also strengthened financial inclusion. It has made digital payments easier for consumers, merchants and businesses across the country.
UPI Growth: Key Numbers After 10 Years
UPI has recorded strong growth in both transaction volume and value.
Annual transaction volume increased from 1.78 crore in FY 2016-17 to more than 24,162 crore in FY 2025-26. This represents an almost 13,000-fold increase.
Transaction value rose from ₹0.07 lakh crore to around ₹314 lakh crore during the same period. This marks a more than 4,000-fold increase.
UPI recorded a 188% CAGR in transaction volume and a 155% CAGR in transaction value over the period.
In FY 2025-26, UPI accounted for around 84% of India’s digital payment transactions.
UPI Sets New Monthly and Daily Records
UPI continued its strong growth in 2026.
Monthly transaction volume crossed 2,300 crore for the first time in May 2026. It reached 2,320 crore transactions during the month.
The platform then recorded a new monthly high in July 2026. UPI processed 2,366 crore transactions, with a total value of around ₹29.88 lakh crore.
UPI now processes an average of around 66 crore transactions every day.
Transaction volume grew by 30% year-on-year in 2025-26. Transaction value increased by 21% during the same period.
Banking Ecosystem Expands with UPI Growth
The UPI ecosystem has expanded significantly since its launch.
The number of banks live on UPI increased from 44 in FY 2016-17 to 703 in FY 2025-26. The number reached 741 banks as of July 2026.
The ecosystem includes public sector banks, private banks, small finance banks, payment banks and cooperative banks.
These participating banks support both outgoing and incoming UPI transactions. Their wider participation has helped UPI expand its reach across India.
UPI started with 21 banks at launch in April 2016. Its first month saw around 90,000 transactions in August 2016.
Small-Value Payments Drive UPI Adoption
UPI has become an important channel for everyday retail payments.
Person-to-merchant (P2M) payments account for around 63% of total UPI transaction volume. This reflects the widespread use of UPI for retail purchases and other merchant payments.
Person-to-person (P2P) payments, however, account for around 71% of total transaction value. This indicates greater use of P2P payments for higher-value fund transfers.
Small-ticket payments remain a major part of UPI usage. Around 86% of P2M transactions were below ₹500 in FY2025-26.
Among P2P transactions, 59% were below ₹500. The remaining transactions included larger-value transfers.
UPI Emerges as a Global Real-Time Payments Leader
UPI has moved beyond India’s domestic payments market and gained global recognition.
The International Monetary Fund (IMF) has recognised UPI as the world’s largest real-time payment system by transaction volume.
In 2025, UPI accounted for nearly 49% of global real-time payment transaction volume.
The platform is now operational in 11 countries. These include the United Arab Emirates, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece and the Maldives.
This international expansion positions UPI as an important platform for cross-border digital payments.
UPI Growth Strengthens India’s Digital Public Infrastructure
UPI is now one of the key components of India’s Digital Public Infrastructure (DPI).
Its interoperable design allows users to make instant payments through participating applications and banks. This has created a common digital payments network for consumers and businesses.
For merchants, UPI offers a convenient way to accept digital payments. For consumers, it provides a simple method to transfer money and make everyday purchases.
The platform has also supported wider participation in the formal digital economy.
The Road Ahead for UPI
The next phase of UPI growth is expected to focus on wider adoption, new users and more merchants.
Continued investment in technology and digital infrastructure can further strengthen the ecosystem. Cross-border payments also offer opportunities for UPI to expand its international presence.
As UPI enters its second decade, its scale, interoperability and growing global reach underline India’s progress in building a large-scale digital payments ecosystem.
With more than 24,162 crore annual transactions, ₹314 lakh crore in annual transaction value and operations across 11 countries, UPI has evolved from a domestic payment initiative into a globally recognised real-time payments platform.
Image Source: DD India
