UPI Sets New Record with 21.7 Billion Transactions in January 2026

India’s Unified Payments Interface (UPI) has once again demonstrated its rapid growth, setting a new record in January 2026. According to data released by the National Payments Corporation of India (NPCI), UPI transaction volumes and values both increased month-on-month, reflecting the country’s accelerating shift towards digital and cashless payments.

UPI Records 21.7 Billion Transactions in January 2026

As per figures released by the National Payments Corporation of India (NPCI), the Unified Payments Interface (UPI) maintained its growth momentum in January 2026, recording 21.7 billion transactions. This marks a slight increase compared to 21.63 billion transactions in December 2025.

The total transaction value reached ₹28.33 lakh crore during the month, underlining the growing reliance on UPI for everyday payments across India.

Transaction Value Rises by ₹1.3 Lakh Crore in One Month

In December 2025, UPI transactions were valued at ₹27.97 lakh crore. This figure rose by ₹1.3 lakh crore in January, reflecting a strong month-on-month growth of 21%.

On average:

• Around 70 crore UPI transactions were processed daily

• The average daily transaction value stood at approximately ₹91,400 crore

These numbers highlight the increasing preference for digital payments among Indian consumers.

UPI Sees 28% Year-on-Year Growth

Worldline CEO Ramesh Narasimhan stated that UPI’s rapid adoption continues unabated. In January 2026, UPI registered a 28% year-on-year growth compared to the same period last year, clearly indicating India’s steady progress toward a cashless economy.

Why UPI Usage Is Growing Rapidly in India

Several factors have contributed to the continuous rise in UPI users and transactions:

Low or Zero Transaction Charges

Most UPI transactions are free or carry minimal charges. Small-value payments do not attract MDR, making UPI convenient for both consumers and merchants.

Instant and Easy Payments

UPI enables money transfers within seconds using a UPI ID, QR code, or mobile number. Apps like Google Pay, PhonePe, and Paytm have further enhanced user convenience.

Smartphone and Internet Penetration

With millions of smartphone users, affordable internet, and widespread 4G and 5G connectivity, UPI usage has expanded rapidly even in rural areas. Small merchants in villages now accept payments via QR codes.

Government Support and Digital Initiatives

Initiatives such as Digital India, Jan Dhan Yojana, and cashless payment promotions have boosted UPI adoption. Banks and fintech companies continue to onboard new users and small businesses.

Everyday Usage Across Demographics

People now use UPI for vegetables, groceries, utility bills, and online shopping. Rapid growth has been observed among women users, Gen Z, and rural populations, improving financial inclusion and reducing cash dependency.

UPI’s Growing International Presence

Beyond India, UPI is steadily expanding globally. The payment system is already live in Singapore, the UAE, Nepal, Bhutan, Sri Lanka, Mauritius, and France. NPCI is also working to extend UPI services to the UK, Australia, Southeast Asia, and select regions in the Middle East, further strengthening India’s digital payment footprint worldwide.