UPI Transaction volumes hit a record high in August 2026, with the platform processing 24.51 billion UPI Transactions worth Rs 29.82 lakh crore, according to NPCI data. The August numbers surpassed July's 23.66 billion transactions. However, transaction value declined marginally from Rs 29.88 lakh crore recorded in July.

Key Highlights 

• UPI Transaction volume hit a record 24.51 billion in August 2026, worth Rs 29.82 lakh crore.
• PhonePe led UPI Transaction share at 45.89%, followed by Google Pay at 32.33% and Paytm at 8.05%.

UPI Volume Growth Continues Even as Value Dips Slightly

On a daily basis, UPI processed an average of 791 million transactions in August, with average daily transaction value standing at Rs 96,205 crore. Compared to July, transaction volume rose 3.6% from 23.66 billion, while transaction value declined 0.2% from Rs 29.88 lakh crore.

On a year-on-year basis, transaction volume grew 22%, while transaction value increased 20%. This continues the platform's sustained growth trajectory - UPI transaction value had already crossed Rs 314 lakh crore for the full FY26, according to Grant Thornton report, underscoring the scale UPI has achieved over the past year. UPI had first crossed the 23-billion monthly transaction mark in May this year and has continued to see strong growth in the months since.

As of July, Walmart-backed PhonePe retained its lead in the UPI ecosystem with 10.86 billion transactions, followed by Google Pay with 7.65 billion and Paytm with 1.90 billion transactions. PhonePe, Google Pay and Paytm accounted for 45.89%, 32.33% and 8.05% of overall UPI transaction volume, respectively. NPCI is yet to release app-wise transaction data for August.

MDR Discussions Resurface Around UPI Transactions

In August, discussions around the merchant discount rate - MDR on UPI resurfaced after the government proposed changes to the Payment and Settlement Systems Act, 2007. The amendment gives the government flexibility to decide which electronic payment modes remain exempt from merchant charges. The government has clarified that consumers will not be charged for UPI transactions, and that any future MDR would apply only to a limited set of merchant transactions.

Also Read: UPI Hits Record 23.66 Billion Transaction Volume in July: NPCI Data`

UPI's Global Footprint Continues to Expand

UPI's international expansion also gained further momentum recently, with the Maldives launching a real-time payment corridor with India. UPI merchant payments are now live across 10 international markets, including Bhutan, Singapore, the United Arab Emirates, France, Mauritius, Sri Lanka, Nepal, Qatar, Cambodia and the Maldives.

Additionally, Greece remains connected for person-to-person transfers, while Singapore and Nepal also support remittance linkages, further strengthening UPI's position as a globally expanding digital payments infrastructure.