Transaction volumes rose 22% year-on-year in July, while the transaction value increased 19% compared with the year-ago period. The platform recorded an average of 763 million transactions every day during the month, with average daily transaction value at ₹96,383 crore.
The July performance surpassed June 2026 levels, when UPI processed 22.72 billion transactions worth ₹28.92 lakh crore. In June, transaction volumes had grown 23% year-on-year, while transaction value increased 20%.
Experts said the latest milestone reflects the growing adoption of digital payments beyond large cities, with smaller towns and rural markets increasingly using UPI for everyday payments such as local purchases, bill payments, recharges and money transfers.
“UPI continues to strengthen the foundation of India’s digital payments ecosystem,” said Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.
He added that the next phase of growth will be driven by deeper adoption in tier-2, tier-3 and rural markets, where UPI is moving from being an occasional payment option to a part of daily transactions.
Reeju Datta, Co-founder, Cashfree Payments, said July marked the highest month on record for UPI in terms of both volume and value. He pointed out that the record came despite July typically being a softer month for payments, without major festive demand or quarter-end institutional settlements.
“The growth is being driven purely by organic, everyday transaction behaviour rather than any seasonal or structural event,” Datta said.He noted that the gap between volume and value growth indicates a rise in smaller-value, higher-frequency transactions. While transaction count grew 22% year-on-year, transaction value rose 19%, suggesting that newer users and smaller merchants are increasingly moving routine cash payments to digital platforms.
Siddharth Mehta, Co-founder of Kiwi, said UPI’s latest numbers highlight the growing trust among consumers and merchants. He added that the next phase of evolution could come from products such as Credit on UPI, which can enable users to access short-term credit through payment journeys they already use.
“With UPI adoption growing, the focus is shifting from how often people pay to how they pay, and credit on UPI could play a key role in expanding access to formal credit,” Mehta said.
With the festive season expected to begin in October, industry players expect UPI adoption and transaction activity to gain further momentum in the second half of 2026.
