India’s Unified Payments Interface (UPI) recorded its highest-ever monthly transaction volume in July 2026, processing 23.66 billion transactions worth ₹29.88 lakh crore, according to data released by the National Payments Corporation of India (NPCI). The milestone comes after a marginal dip in June, highlighting the continued expansion of digital payments across the country.UPI transaction volumes rose 4.1 per cent month-on-month from 22.72 billion in June, while the value of transactions increased 3.3 per cent from ₹28.92 lakh crore. On a year-on-year basis, transaction volume grew 22 per cent, while transaction value increased 19 per cent.The July transaction count surpassed the previous monthly record of 23.20 billion transactions set in May this year. However, the transaction value remained just below the all-time high of ₹29.90 lakh crore recorded in May.On an average, UPI processed 763 million transactions a day during July, with average daily transaction value at ₹96,383 crore.Industry executives said the growth was driven by sustained consumer adoption rather than seasonal factors.“July had none of those tailwinds, which means the growth is being driven purely by organic, everyday transaction behaviour rather than any seasonal or structural event,” said Reeju Datta, co-founder of Cashfree Payments.Anand Kumar Bajaj, Founder, MD and CEO of PayNearby, said UPI’s growth is increasingly being led by smaller towns and rural markets.“Across tier-2, tier-3 and rural markets, UPI is steadily moving from being an occasional alternative to becoming a part of everyday transactions. Consumers are using it for local purchases, recharges, bill payments and money transfers, supported by growing familiarity, wider acceptance and trusted assistance within their communities,” he said.Bajaj added that with the festive season approaching, digital payment adoption is expected to gain further momentum, led by rising participation from smaller towns and rural Bharat. He said the focus should remain on strengthening trust, awareness and ease of usage at the grassroots to ensure that the growth in digital payments translates into broader financial inclusion.As of June, Walmart-backed PhonePe continued to lead the UPI ecosystem with 10.48 billion transactions, followed by Google Pay and Paytm. WhatsApp had overtaken CRED in transaction volumes during the month. NPCI is yet to release app-wise transaction data for July.Published on August 1, 2026