UPI made a record; more than 700 million transactions happened in a single day. Know what the government's goal is

Tech News: India's digital payment system UPI (Unified Payments Interface) achieved another major milestone on 2 August 2025. A record 707 million, or more than 70.7 crore, transactions were recorded on this day. This figure was shared by the National Payments Corporation of India (NPCI), which shows how fast digital payments are growing in the country.

Doubled growth year-on-year

The popularity of UPI has increased tremendously in the last few years. While its daily transactions were around 35 crores in 2023, they increased to 50 crores by August 2024. Now it has crossed the 70 crore mark. The government aims to increase this number to 1 billion (100 crores) per day by 2026.

What is UPI, and how does it work?

UPI is a real-time payment system that allows users to send and receive payments instantly through mobile. It links multiple bank accounts to a single app, making transactions fast, simple, and secure. Users can make payments with just a UPI ID or mobile number, without having to enter bank details or card numbers.

How did the 700 million mark get crossed?

On August 2, when the month started, a huge jump in transactions was seen as people made payments like rent, bills, and salaries. The average daily transaction of UPI in July 2025 was around 650 million. In the first week of August, it broke the record and reached 707 million.

Meaning of success of UPI

Over 70 crore transactions is not just a number. It shows how UPI has become a vital part of India's financial infrastructure. Today, about 85% of the country's digital payments are happening through UPI. Business transactions are also growing rapidly, and merchant payments now account for about 62% of total UPI transactions.

Demand for withdrawal of MDR

UPI is currently free from Merchant Discount Rate (MDR), due to which banks and app companies do not earn much income. In such a situation, many fintech companies are pressuring the government to reimplement MDR on large transactions so that the system can become financially sustainable. RBI is also thinking in this direction.

On which platforms is UPI used?

Today, major apps using UPI include PhonePe, Google Pay, Paytm, BHIM, Amazon Pay, and many banking apps. The feature is now integrated into more than 300 banks and is being used everywhere from grocery stores to e-commerce sites.

Is UPI challenging cash and traditional banking?

The expansion of UPI is reducing the use of cash transactions and debit cards, especially in cities. Although traditional banking is still important for large investments and loans, UPI has become a major alternative for everyday needs. In rural areas, cash usage is still dominant, but the direction of change is clear.