The Unified Payments Interface (UPI), launched on 25 August 2016, has completed 10 years. NPCI developed the platform under the Reserve Bank of India’s regulatory oversight. UPI has since become the backbone of India’s digital payments ecosystem. It also stands as a critical driver of financial inclusion nationwide.
Over the decade, UPI has demonstrated extraordinary scale and consistent momentum. Annual transaction volume expanded from just 1.78 crore in FY17. It reached over 24,162 crore transactions by FY26, an almost 13,000-fold surge.
Transaction value similarly rose sharply during this same period. It grew from ₹7,000 crore to around ₹314 lakh crore, representing significant growth.
Growth wasn’t limited to early years, continuing steadily throughout the decade. Volume rose from 92 crore in FY18 to 24,162 crore by FY26. This reflects a compound annual growth rate of 188%. Transaction value similarly grew at a 155% compound annual rate.
The year 2026 marked several significant milestones in UPI’s growth trajectory. Monthly transaction volumes crossed 2,300 crore for the first time in May. This reached 2,320 crore transactions. Momentum continued through the year, with July recording 2,366 crore transactions.
Banking participation has expanded significantly since UPI’s initial launch phase. Only 44 banks were ‘live on UPI’ during FY17. This number grew substantially, reaching 703 banks by FY26. This onboarding spans public, private, small finance and cooperative banks.
Examining transaction patterns reveals a clear divergence between volume and value. Person-to-merchant transactions account for 63% of total transaction volume. Conversely, person-to-person transactions dominate the transaction value, accounting for 71% overall.
Ticket size distribution further illustrates UPI’s integration into daily life. For P2M transactions, 86% involved payments below ₹500. This shows UPI’s deep integration into routine retail and commerce. P2P transactions also showed significant low-value usage, with 59% below ₹500.
UPI: Global expansion
Globally, UPI has evolved into a benchmark for digital payments. As of 2025, it accounts for nearly 49% of global real-time transaction volume. This milestone earned recognition from the International Monetary Fund (IMF). With over 66 crore daily transactions, UPI has surpassed other global networks.
UPI has also expanded internationally, increasingly supporting cross-border digital payments. It’s currently operational across eleven countries worldwide. These include the United Arab Emirates, France, Bhutan, Sri Lanka and Nepal. Singapore, Mauritius, Qatar, Cambodia, Greece and the Maldives complete this list.
Looking ahead, UPI’s next decade promises even greater transformation domestically. The Government of India remains committed to further expanding this ecosystem, according to the Press Information Bureau (PIB).
“By bringing new users and merchants to the UPI Ecosystem, Government of India remains committed to enabling the next phase of UPI-led innovation and strengthening India’s digital payments ecosystem through continued policy support, technological advancement, and greater financial inclusion,” PIB added.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.