UPI is completing 10 years on August 25, 2026, marking a major milestone in India’s digital payments journey. Launched in 2016 as a new payment system, it has grown into one of the country’s most widely used digital payment platforms, transforming how millions of people transact every day.
UPI was launched by the National Payments Corporation of India (NPCI) under the supervision of the Reserve Bank of India (RBI). Over the past decade, it has changed how people send money, pay shops, and handle routine payments, making digital transfers simple and widely accessible.
Big Milestone for India
The scale of UPI growth is visible in its transaction numbers. Annual transactions have increased from 1.78 crore in FY2016-17 to more than 24,162 crores in FY2025-26. This represents an increase of nearly 13,000 times in a decade.
Transaction value has also grown sharply. It has moved from just Rs 0.07 lakh crore in FY2016-17 to around Rs 314 lakh crore in FY2025-26, marking a rise of more than 4,000 times.
The expansion of UPI has also brought more banks into the network. Only 44 banks were live on the platform in FY2016-17. The number increased to 703 by FY2025-26 and reached 741 banks by July 2026.
UPI now handles an average of around 66 crore transactions every day. July 2026 sets another record; with 2,366 crore transactions worth Rs 29.88 lakh crore processed during the month.
Small Payments Dominate
UPI now accounts for around 84% of digital payment transactions in India, showing how deeply it has entered everyday financial activity. Its use is especially visible in small retail payments.
Person-to-merchant, or P2M, transactions make up about 63% of total UPI transaction volume. Around 86% of P2M transactions in FY2026 are below Rs 500, showing that people increasingly use UPI for regular purchases such as food, groceries and other daily needs.
Person-to-person, or P2P, payments account for around 71% of transaction value, reflecting the importance of UPI for larger transfers between individuals.
UPI is also gaining attention outside India. According to government data, the platform accounts for nearly 49% of global real-time payment transaction volume in 2025. The International Monetary Fund has recognised UPI as the world’s largest real-time payment system by transaction volume.
The platform is currently operational in 11 countries, including the UAE, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece and the Maldives. This expansion is helping UPI become part of India’s wider cross-border digital payments strategy.
Ten Years Journey
UPI records around 90,000 transactions in its first month in August 2016. Ten years later, its monthly volume crosses 2,300 crore transactions. In May 2026, monthly transactions reach 2,320 crores for the first time, before rising further to 2,366 crores in July.
The growth is supported by participation from public sector banks, private banks, small finance banks, payment banks and cooperative banks. This wide banking network helps UPI reach users across cities, towns and smaller communities.
UPI has become a major part of India’s Digital Public Infrastructure. Its interoperable system allows users of different banks and payment applications to transact through a common network.
The platform combines instant settlement with a relatively simple payment process. This has helped bring more consumers and small merchants into formal digital payments while making cashless transactions easier for everyday use.
UPI Enters Next Decade
As UPI enters its second decade, the next phase is likely to focus on expanding its user and merchant base, increasing international connectivity and developing new financial services.
The government is also expected to continue supporting technological upgrades and financial inclusion. The challenge will be to maintain the platform’s reliability and scale while handling increasingly large transaction volumes.
From fewer than one lakh transactions in its first month to more than 2,300 crore transactions in a single month, UPI has changed the way millions of people pay. Its first decade establishes it as one of the most important digital payment success stories to emerge from India.
