Unified Payments Interface (UPI). Introduced on 25 August 2016 by the NPCI (National Payments Corporation of India) under the regulatory authority of the RBI (Reserve Bank of India), UPI is a revolutionary system that has transformed the way people and organizations conduct their payments.
Whereas only a few transactions took place initially, the system has now become one of the largest real-time payment systems in the world. In the course of 10 years, UPI has spread out to banks, businesses and customers, being a major element of the DPI of India.
UPI Crosses 10-year Mark
UPI has witnessed phenomenal growth over the years. The annual transaction volume grew from 1.78 crore in FY 2016-17 to more than 24,162 crore in FY 2025-26.
That is a 13,000 times rise in annual transaction volume within less than a decade. The transaction value has risen too, from ₹0.07 lakh crore in FY 2016-17 to ₹314 lakh crore in FY 2025-26.
This is due to the high degree of penetration of UPI into our daily finance activities. From making transfers to your family members to paying for your groceries, food items, travels, and services, UPI transactions have seeped into our financial routine.
UPI Quick Facts: Key Statistics
- Launch Date: 25 August 2016
- Annual Transactions, FY 2016-17: 1.78 crore
- Annual Transactions, FY 2025-26: 24,162 crore
- Transaction Volume CAGR: 188%
- Annual Transaction Value, FY 2016-17: ₹0.07 lakh crore
- Annual Transaction Value, FY 2025-26: ₹314 lakh crore
- Transaction Value CAGR: 155%
- YoY Volume Growth, 2025-26: 30%
- YoY Value Growth, 2025-26: 21%
- Average Daily Transactions in 2026: 66 crore
- Record Monthly Transactions: 2,366 crore in July 2026
- Record Monthly Value: ₹29.88 lakh crore in July 2026
- Banks Live on UPI, July 2026: 741
- Banks at Launch: 21
- First Month Transactions: 90,000
- Share of India’s Digital Payments: 84% in FY 2025-26
- Share of Global Real-Time Payment Volume: 49% in 2025
- Countries Where UPI is Operational: 11
UPI Hits New Records in July 2026
A period of growth continued for UPI in 2026. UPI transactions crossed 2,300 crore for the first time in May 2026. The number of transactions done through UPI in May 2026 was around 2,320 crore.
UPI set another record in July 2026 with its monthly transactions crossing 2,366 crore for the first time. It is the highest volume seen for a month in a decade of UPI operations. The transaction value during the month was also record ₹29.88 lakh crore.
On an average, around 66 crore transactions are done through UPI per day now, making it a regular financial tool for many people of India.
Participation of More Banks and a Bigger UPI Ecosystem
The growing use of UPI has also been fueled by the increasing participation of more banks.
From 44 banks in FY 2016-17, the number of banks on UPI has gone up to 703 in FY 2025-26. As of July 2026, the number has further increased to 741 banks.
Public sector banks, private banks, small finance banks, payment banks, and cooperative banks are the banks that have joined the system.
The banks can participate as remitter PSPs, which facilitate outgoing transactions, and/or beneficiary PSPs, which receive funds.
UPI has Revolutionized Everyday Payments
One of the most impressive features of UPI is its capability to facilitate not only person-to-person but also person-to-merchant payments using an interoperable system.
Approximately 63% of transaction volume on UPI relates to P2M payments, demonstrating the popularity of this payment solution for making daily purchases. Yet, P2P transactions make up around 71% of transaction volumes, which is associated with a bigger average value of transfers between people.
The usage of this platform is most important to small transaction volumes. So, in FY 2025-26, around 86% of P2M transactions were below ₹500. It demonstrates how UPI became a go-to choice for making everyday retail purchases.
At the same time, there is also considerable usage of P2P transactions with the volume below ₹500. Such transactions account for around 59% of transaction volumes.
UPI becomes the World Leader in Digital Payments
Nowadays, the influence of UPI has significantly expanded beyond the borders of India. Based on the information shared by the government, UPI was responsible for almost 49% of the global transaction volume for real-time payments in 2025.
According to IMF, UPI became the world’s biggest real-time payment system in terms of transaction volumes thanks to India’s digital payments infrastructure.
Today, UPI works in 11 different countries,
- United Arab Emirates
- France
- Bhutan
- Sri Lanka
- Nepal
- Singapore
- Mauritius
- Qatar
- Cambodia
- Greece
- Maldives
UPI and Financial Inclusion
The effects of UPI go beyond the number of transactions. They lie much deeper, and the true value of UPI in its capacity to make financial inclusion easier.
Since UPI enabled people to transfer money instantly through a number of applications and bank accounts, this system made transactions simpler both for consumers and merchants. Local enterprises, small shop owners and street merchants do not have to install expensive payment devices to receive payments in their stores.
Thus, UPI became a way to solve some of the problems of the digital divide as well as increase the participation in the formal financial system.
Future of UPI
The coming decade seems to be as crucial for UPI as the previous one. Since transaction volume is already extremely high, the key challenges in the following years will be the increase of both users and merchants who participate in the process and the improvements of innovation, security and convenience.
With continuous development and support of policies, UPI can become even more useful as a system for both domestic payments and international transfers.
With the progress of Digital Public Infrastructure in India, UPI will keep on playing one of the central roles there.
