Digital gold purchases through the Unified Payments Interface (UPI) surged to a record high in March 2026, highlighting the growing popularity of small-ticket digital investments among Indian consumers. According to data released by the National Payments Corporation of India (NPCI), transaction volumes reached 254.44 million, while the total transaction value stood at Rs 3,171.96 crore.

Key Highlights

• Digital gold purchases via UPI hit record 254 million transactions in March, showing rising adoption.
• Small-ticket investments grow as UPI dominates digital gold purchases amid shifting consumer buying behavior.

Although the March transaction value remained below the January peak of Rs 3,926.47 crore, it marked an increase from Rs 3,032.41 crore recorded in February. Meanwhile, transaction volumes rose sharply from 222.83 million in February to an all-time high in March, indicating sustained retail participation.

UPI Emerges as Dominant Channel for Digital Gold

UPI has firmly established itself as the primary platform for digital gold purchases in India, accounting for over 90% of transactions in the segment.

Leading fintech and payment platforms such as Paytm, PhonePe, Amazon Pay, and Google Pay have significantly expanded access to digital gold, enabling users to invest seamlessly through mobile applications.

The data highlights a notable shift in consumer preferences. Instead of traditional lump-sum purchases during festive seasons, users are increasingly opting for smaller, frequent investments, driven by convenience and accessibility offered by digital platforms.

The digital gold segment experienced fluctuations in late 2025. Purchases stood at Rs 2,290 crore in October, dropped to Rs 1,215 crore in November, and rebounded to  Rs 2,079 crore in December, before peaking in January 2026.

Despite rapid growth, the segment continues to operate without a dedicated regulatory framework. The Securities and Exchange Board of India has clarified that digital gold products currently fall outside its regulatory purview, leaving the sector without formal oversight even as transaction volumes rise.

Also Read: Gold Loans Emerge as India's Second-Largest Retail Credit Segment

UPI Spending Trends: Consumption Leads

Beyond digital gold, UPI transactions in March were largely driven by consumption-led categories:

• Groceries & supermarkets: 3,751 million transactions worth Rs 81,879 crore.
• Fast food outlets: 1,474 million transactions worth Rs 17,237 crore.
• Restaurants: 1,250 million transactions worth Rs 20,784 crore.
• Fuel purchases: Rs 44,180 crore.
• Telecom services: Rs 23,723 crore.

This aligns with the broader growth of India’s digital payments ecosystem, where UPI recorded 22.64 billion transactions worth Rs 29.53 lakh crore in March 2026, underscoring its dominance in everyday financial activity.