India’s digital payments landscape witnessed a significant resurgence in March 2026, with the Unified Payments Interface (UPI) achieving its highest monthly transaction volume to date. UPI processed 22.64 billion transactions during the month, a notable increase from the 20.39 billion transactions in February and surpassing the previous peak of 21.70 billion transactions in January. Year-on-year, transaction volumes grew by 24 percent.
In terms of transaction value, UPI transactions amounted to Rs 29.53 lakh crore in March, up from Rs 26.84 lakh crore in February, and Rs 28.33 lakh crore in January. The value of transactions in March showed a 19 percent year-on-year growth, slightly lower than the 22 percent growth in February.
On a daily basis, the average number of transactions marginally rose to 730 million in March, compared to 728 million in February. However, the average daily transaction value slightly decreased to Rs 95,243 crore from Rs 95,865 crore in the previous month.
Among UPI apps, PhonePe maintained its lead in the market with a 45.5 percent share by transaction volume in February. Google Pay secured the second spot with approximately 33 percent share, while Paytm followed with a share of around 7 to 8 percent.
The UPI platform has expanded its reach to more than eight countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar, positioning India as a frontrunner in digital payments on a global scale. This international adoption of UPI is enhancing remittances, driving financial inclusion, and solidifying India’s standing in the global fintech sector.
An independent study commissioned by India’s Finance Ministry revealed that UPI has become the preferred payment mode, constituting 57 percent of total payment transactions in India, surpassing cash transactions at 38 percent. This shift is primarily attributed to the convenience and instant fund transfer capabilities offered by UPI.
