Newer figure, checked 10 Nov 2026. UPI processed 25.47 billion transactions worth ₹31.53 lakh crore in October 2026, about ₹1,238 a payment, according to Entrepreneur India (3 Nov 2026, citing NPCI). The figures below are September 2026 until we have read NPCI's own October table.
April 2026 • Updated • 8 min read
In September 2026 UPI processed 24.07 billion transactions worth ₹29.37 lakh crore in the month, an average of 802 million a day at ₹1,220 a payment (₹29.37 lakh crore ÷ 24.07 billion; June 2026 was ₹1,273) (NPCI, as listed on /numbers/). P2M payments to merchants are a large and growing share. UPI Lite handles small payments without a PIN, and 123PAY brings UPI to feature phones. The business for builders is in the products on top of UPI, not in UPI itself.
UPI processed 24.07 billion transactions in September 2026. That is an average of 802 million a day, the first time above 800 million. Source: NPCI product statistics, as listed on /numbers/ (checked 4 Nov 2026).
P2M payments (person to merchant) cover everyday purchases: groceries and quick commerce, food delivery, ride-hailing and retail. P2P payments (person to person) are transfers between people. NPCI publishes the split each month on its statistics page.
The value of UPI payments in September 2026 was ₹29.37 lakh crore for the month. The average payment was ₹1,220 (₹29.37 lakh crore divided by 24.07 billion payments; in June 2026 it was ₹1,273). Both figures are NPCI's, as listed on /numbers/. These are monthly figures; a year of UPI is roughly twelve times larger.
In metro cities most shops, restaurants and delivery partners accept UPI, down to small stalls with a printed QR code. We have no dated count of merchants, so this section gives none.
Acceptance is highest in metros, lower in tier-2 cities and lowest in rural markets, where cash is still common.
For fintech builders: If you're building a merchant product (payouts, settlements, lending to merchants), UPI is your acquisition lever. Merchants are trained to use UPI. Building on top of it is easier than building parallel payment infrastructure.
UPI Lite acts as an on-device wallet that allows users to make low-value transactions quickly without entering a UPI PIN. RBI sets the per-payment and wallet limits; check NPCI's site for the current ones. It was launched to take small payments off the banks' core systems.
Use case for UPI Lite: Emergency payments in genuinely offline scenarios (rural villages, underground trains). For fintech builders: not a direct opportunity, but monitor adoption — if it grows, it signals a market for ultra-low-connectivity products.
UPI 123PAY enables feature phone users (non-smartphones) to make UPI payments by dialing a number and listening to IVR prompts. It is used mostly by older and rural users. We have no dated figure for its share of UPI users.
Why slow? Cheap Android smartphones are replacing feature phones, so the room for feature-phone payments is shrinking.
NPCI is pushing UPI beyond India's borders. Partnerships with Nepal, Singapore, and Thailand allow Indians to send remittances via UPI to these countries. Volumes are still small next to domestic UPI. The aim: UPI becomes the default payment method for India-to-Asia remittances, displacing expensive SWIFT transfers and hawala.
UPI is infrastructure. The real business is in the products built on top:
Monthly volume passed 20 billion transactions in 2026. The harder question now is money: UPI payments carry no merchant fee, so NPCI, banks and apps earn little on the payment itself and make it up in products built on top. For the latest month, see /numbers/ or NPCI's statistics.
NPCI is semi-government; UPI is considered infrastructure. Charging would discourage adoption, delaying the transition from cash. Plus, NPCI receives funding from banks (who benefit from digital transactions). Fintech apps monetize by adding products on top (BNPL, lending, investment).
Not soon. Cash is still common in villages and among older people. But in metros and tier-2 cities, digital payment (primarily UPI) is now the default. India is in a transition state — not fully cashless, but cash-optional in most scenarios.
Yes, but only as a layer. Do not build a "UPI competitor." Build a product that leverages UPI: subscription management, merchant payouts, BNPL, neobanking, or B2B payments. UPI is your acquisition lever, not your core product.
Have a question about India's tech market? Ask Kriyā: it answers from our dated sources, and the first answers are free.
Ask Kriyā