UPI clocks record 23.66 billion transactions in July

MUMBAI: India’s favourite payment habit has found yet another gear, one tap at a time. The Unified Payments Interface (UPI) powered its way to a new monthly record in July 2026, processing 23.66 billion transactions worth Rs 29.88 lakh crore, underscoring the platform’s growing role as the backbone of India’s digital economy.

Data released by the National Payments Corporation of India (NPCI) showed transaction volumes climbed 22 per cent year on year, while the total value of payments rose 19 per cent compared with July 2025.

The platform also set new daily benchmarks, handling an average of 763 million transactions every day, with average daily transaction value reaching Rs 96,383 crore.

The July performance surpassed the previous high recorded in June 2026, when UPI processed 22.72 billion transactions worth Rs 28.92 lakh crore. June had posted 23 per cent annual growth in transaction volumes and 20 per cent growth in transaction value.

The latest milestone reflects UPI’s expanding footprint beyond India’s largest cities, with digital payments becoming an everyday habit across tier-2, tier-3 and rural markets. Consumers are increasingly using the platform for routine purchases, utility bill payments, mobile recharges and person-to-person money transfers.

Industry executives believe the growth signals a structural shift rather than a seasonal spike.

Anand Kumar Bajaj, Founder, MD and CEO of PayNearby, said UPI continues to strengthen India’s digital payments ecosystem, adding that the next phase of expansion is likely to be driven by deeper adoption across smaller towns and rural regions, where digital payments are increasingly replacing cash in everyday transactions.

Reeju Datta, Co-founder of Cashfree Payments, noted that July became UPI’s biggest month on record despite the absence of major festivals or quarter-end settlement activity. According to him, the performance reflects sustained everyday consumer spending rather than temporary seasonal demand.

He also pointed out that transaction volumes are rising faster than transaction values, indicating growing adoption of smaller-ticket, high-frequency payments as more consumers and merchants migrate routine cash transactions to digital channels.

Meanwhile, Siddharth Mehta, Co-founder of Kiwi, said the latest numbers highlight increasing trust in UPI among both consumers and merchants. He added that innovations such as Credit on UPI could fuel the next phase of growth by widening access to short-term formal credit through familiar payment journeys.

With the festive season approaching in the second half of 2026, industry participants expect UPI’s growth trajectory to gather even greater momentum, reinforcing its position as India’s default payment network for both consumers and businesses.