India's digital payment system UPI is continuously making new records. It is expected to reach 240 billion transactions in the financial year 2026 (FY26), which is about 30 percent more than last year. National Payment Corporation of India (NPCI) data confirms this rapid growth. However, amid this boom, payment companies are now demanding a new revenue model from the government.
The growth graph of UPI is continuously going up. While there were 131 billion transactions in FY24, it increased to 185 billion in FY25. Now it is expected to touch the figure of Rs 240 billion in FY26. This shows an annual growth of about 30 percent. Although this is slightly less than last year's 41 percent growth, it still clearly shows the increasing use of digital payments.
UPI has also achieved new heights in terms of daily transactions. In this financial year, an average of 657 million transactions took place daily, which is much more than last year's 506 million. The figure of 800 million daily transactions was crossed for the first time in March. The target of the government and NPCI is to reach 1 billion transactions daily, which seems possible in the next financial year considering the current pace.
Digital payment companies are now demanding re-implementation of Merchant Discount Rate or MDR. Earlier, 0.3 percent MDR was charged on UPI, which was removed in 2020. Now companies say that relying on subsidies is not a permanent solution. He believes that by implementing MDR on big traders, they will get a source of stable income. Especially there is a demand to implement it on traders with turnover of more than Rs 40 lakh.
