India’s flagship digital payments system, the Unified Payments Interface (UPI), has achieved another milestone in FY 2025–26, recording an outstanding ₹230 lakh crore in transaction value through December 2025 — equivalent to about $2.56 trillion. This landmark reflects both broad consumer uptake and deepening integration of digital payments across business and everyday life. UPI’s performance highlights India’s rapid shift toward a cashless economy and underlines the platform’s role as a cornerstone of digital finance infrastructure. Its seamless, instant, and interoperable nature continues to attract users and merchants nationwide. Drivers of the Record Growth Several factors contributed to UPI’s record transaction value: 1. Widening Adoption Across DemographicsUPI usage has grown steadily not just in urban centres but also in smaller towns and rural areas. Simplicity, low cost and widespread awareness have made UPI a preferred choice for peer-to-peer transfers, bill payments and merchant transactions across socio-economic groups. 2. Merchant Integration and Digital CommerceRetailers, service providers and online merchants increasingly accept UPI payments, boosting both P2M (person-to-merchant) volumes and transaction values. UPI’s integration with QR codes, e-commerce platforms and payment links has expanded everyday utility beyond simple person-to-person transfers. 3. Expanded Use Cases and InnovationNew features — including UPI Autopay, recurring payments,… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
