UPI continued to see strong growth in August, with Indians making more digital payments than ever before. While the total value of transactions remained close to the record high, the number of transactions crossed a new peak during the month.
Data released by the National Payments Corporation of India (NPCI) on Tuesday showed that UPI processed 24.51 billion transactions worth Rs 29.82 lakh crore in August.
The number of UPI transactions reached an all-time high of 24.51 billion in August, up from 23.66 billion in July.
Transaction volume stood at 22.72 billion in June and 23.2 billion in May. The August figure was also 22% higher than the 19.63 billion transactions recorded in the same month last year.
The rise shows how widely UPI is being used for everyday payments, including transfers between individuals and payments at shops and other merchants.
In value terms, UPI transactions stood at Rs 29.82 lakh crore in August. This was slightly below the record Rs 29.9 lakh crore recorded in May and July 2026.
The August figure was also higher than the Rs 24.85 lakh crore recorded in August last year. This represents annual growth of around 20 per cent.
So, while the value of transactions did not set a new record, the number of payments made through UPI did.
The growth in transaction volumes was also supported by festive activity such as Raksha Bandhan. This led to a rise in everyday peer-to-peer transfers and small-value gifting transactions.
Moreover, the upcoming festive season could give UPI another boost as more people turn to digital payments for shopping, gifting and other expenses.
Meanwhile, UPI’s reach is also growing outside India. The payment system is now accepted in 11 countries, with Uzbekistan being the latest addition.
The other countries where UPI is accepted are Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia and Greece.
UPI was launched on August 25, 2016, and has significantly changed the way people make digital payments in India.
According to the NPCI data, the value of UPI transactions rose from Rs 0.07 lakh crore in FY17 to around Rs 314 lakh crore in FY26.
That represents a more than 4,000-fold increase in transaction value over a decade.
With transaction volumes continuing to rise and the festive season ahead, UPI is set to remain a major part of India’s digital payments ecosystem.