Search results for how does UPI payment work 2026 in India in India 2026 explained in India

1. Een.wikipedia.org › wiki › Unified_Payments_InterfaceEN

   Unified Payments Interface - Wikipedia

   # Unified Payments Interface ## History A parallel challenge was combating [black money](https://en.wikipedia.org/wiki/Indian_black_money) and [corruption](https://en.wikipedia.org/wiki/Corruption_in_India), which were primarily facilitated by cash transactions. Rajan, Governor of the Reserve Bank of India, in Mumbai, with 21 member banks participating. UPI works on a four-pillar push-pull interoperable model where there will be a remitter/beneficiary front-end PSP ( [payment service provider](https://en.wikipedia.org/wiki/Payment_service_provider)) and a remitter/beneficiary back-end bank that settles the monetary transaction for the users. [[22]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-livemint-22) With the exponential growth of UPI, India became the world's largest real-time payment market with 25.5 billion annual transactions in 2020 as per data from [ACI Worldwide](https://en.wikipedia.org/wiki/ACI_Worldwide) and [GlobalData](https://en.wikipedia.org/wiki/GlobalData). [[26]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:6-26)[[27]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-27) [[28]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-:7-28) To make UPI economically feasible for payment companies, RBI is considering a [merchant discount rate](https://en.wikipedia.org/wiki/Merchant_discount_rate) (MDR) on future UPI transactions. Currently, around 70% of UPI users are from places other than Tier-1 cities with over 80% of newly registered users originating from Tier-2 cities. [[32]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-32) On 8 August 2024, RBI suggested raising the UPI tax payment ceiling from ₹1 lakh to ₹5 lakh. The expansion of UPI demonstrates that the government is ensuring that the technology it creates for citizens is easy to use, easily accessible, and constantly improved, which accounts for the high rate of UPI acceptance in India. Over 640 million transactions are handled via UPI per day, compared to 639 million by Visa. ## Market share | Year | No. of Payment Partners on UPI | Transaction volume (in mn) | INR value (in mn) | USD value (in bn) | |-|-|-|-|-| | **2026** | 684 | | | | ## Internationalization Users will be able to pay in international currency directly from Indian bank accounts. ## Acceptance ### India (Domestic) [[170]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-170) NPCI is planning to link UPI with standalone mobile wallets so that users can transfer money from one provider to another one which until now is restricted due to use of closed source technology. There is also provision for off-line UPI payment through the use of [near field communication](https://en.wikipedia.org/wiki/Near-field_communication) (NFC). [[171]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-171) From 5 September 2019, [Play Store](https://en.wikipedia.org/wiki/Play_Store) enabled UPI for purchasing apps, games and in-app content. [[172]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-172) On 20 April 2020, Google added support for UPI payment in India to buy membership of [YouTube Premium](https://en.wikipedia.org/wiki/YouTube_Premium) and [YouTube Music](https://en.wikipedia.org/wiki/YouTube_Music) either directly through a website or on the mobile application. Now Indian users can also buy or rent movies from [Google TV](https://en.wikipedia.org/wiki/Google_TV_(service)). UPI is also enabled for the YouTube SuperChat feature. [[173]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-173) From July 2021, [Apple](https://en.wikipedia.org/wiki/Apple_Inc.) [iPhone](https://en.wikipedia.org/wiki/IPhone), [iPad](https://en.wikipedia.org/wiki/IPad), and [IPod Touch](https://en.wikipedia.org/wiki/IPod_Touch) users in India can use UPI on [App Store](https://en.wikipedia.org/wiki/App_Store_(iOS/iPadOS)) and [iTunes Store](https://en.wikipedia.org/wiki/ITunes_Store). [[176]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-176)[[177]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-177) [[178]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-178) From 31 August 2021, [Netflix](https://en.wikipedia.org/wiki/Netflix) integrated UPI AutoPay feature for Indian subscribers which was until now limited to credit and debit cards from [Visa](https://en.wikipedia.org/wiki/Visa_Inc.), [Mastercard](https://en.wikipedia.org/wiki/Mastercard), [American Express](https://en.wikipedia.org/wiki/American_Express), and [Diners Club International](https://en.wikipedia.org/wiki/Diners_Club_International). [[179]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-179) As per April 2021 RBI Monetary Policy Committee directive, after 31 March 2022, all the " [know your customer](https://en.wikipedia.org/wiki/Know_your_customer)" (KYC)-compliant [digital wallets](https://en.wikipedia.org/wiki/Digital_wallet) will become interoperable by using UPI system. [[181]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-181) Due to high usage, [Samsung Electronics](https://en.wikipedia.org/wiki/Samsung_Electronics) integrated UPI [barcode scanner](https://en.wikipedia.org/wiki/Barcode_reader) directly into mobile camera application for faster payment. [[187]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-187) [Lucknow Municipal Corporation](https://en.wikipedia.org/wiki/Lucknow_Municipal_Corporation) (LMC) in collaboration with [Paytm](https://en.wikipedia.org/wiki/Paytm) setting up QR code for housing tax. [[188]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-188) [Kotak Mahindra Bank](https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank) has rolled out the UPI payment facility for the [Goods and Services Tax](https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)) Network (GSTN) in the following states: Assam, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, and Odisha. Additionally, the [Karnataka State Road Transport Corporation](https://en.wikipedia.org/wiki/Karnataka_State_Road_Transport_Corporation) (KSRTC), is also planning to accept UPI payments. [[190]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-190) The [Metropolitan Transport Corporation](https://en.wikipedia.org/wiki/Metropolitan_Transport_Corporation_(Chennai)) (MTC) has provided new handheld devices with UPI capability to its bus conductors in [Pallavaram](https://en.wikipedia.org/wiki/Pallavaram). Other bus depots in Chennai will also be included in the pilot experiment in future. For all MTC buses, the Tamil Nadu Infrastructure Development Board (TNIDB) intends to implement a QR-based ticketing system for UPI payment. [[191]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-191) NPCI has integrated [Kendriya Vidyalaya Sangathan](https://en.wikipedia.org/wiki/Kendriya_Vidyalaya_Sangathan) with the [Bharat Bill Payment System](https://en.wikipedia.org/wiki/Bharat_Bill_Payment_System), allowing pupils to pay their school fees with UPI. [[192]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-192) UPI-based ticketing system made accessible from June 2024 at [Kolkata Metro Blue Line](https://en.wikipedia.org/wiki/Kolkata_Metro_Blue_Line). Automatic Smart Card Recharge Machine has already incorporated it. Additionally, [Kolkata Metro Green Line](https://en.wikipedia.org/wiki/Kolkata_Metro_Green_Line) stations also have UPI facility.[[193]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-193) [Kolkata Metro Orange Line](https://en.wikipedia.org/wiki/Kolkata_Metro_Orange_Line) were made UPI enabled from July 2024. [[194]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-194) With the goal of reducing reliance on third-party apps, minimizing unsuccessful payments, and streamlining the checkout process, [Zomato](https://en.wikipedia.org/wiki/Zomato) and [Swiggy](https://en.wikipedia.org/wiki/Swiggy) launched their own UPI services. Zomato partnered with ICICI Bank, whereas Swiggy is utilizing the UPI Plugin to enable payment, doing away with the need for a TPAP license. UPI payment methods for temple offerings have also been implemented by the [Travancore Devaswom Board](https://en.wikipedia.org/wiki/Travancore_Devaswom_Board). [[197]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-197) Under schemes like Rebate of State and Central Taxes and Levies (RoSCTL) and Remission of Duties and Taxes on Exported Products (RoDTEP), Indian government will permit the payment of customs duties via UPI and expand its use beyond duty payments to include expedited processing of refunds and incentives. [[198]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-198) ## References 9. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-9)[[https://eacpm.gov.in/wp-content/uploads/2026/03/Financial-Inclusion-as-a-Path-to-Equality-Lessons-from-India.pdf](https://eacpm.gov.in/wp-content/uploads/2026/03/Financial-Inclusion-as-a-Path-to-Equality-Lessons-from-India.pdf)](https://eacpm.gov.in/wp-content/uploads/2026/03/Financial-Inclusion-as-a-Path-to-Equality-Lessons-from-India.pdf) UPI transactions hits record high 17. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-17)["10 years of UPI: PM Modi hails India's digital payments milestone and massive reach"](https://timesofindia.indiatimes.com/india/10-years-of-upi-pm-modi-hails-indias-digital-payments-milestone-and-massive-reach/articleshow/133489789.cms). _The Times of India_. 25 August 2026. [ISSN](https://en.wikipedia.org/wiki/ISSN_(identifier)) [0971-8257](https://search.worldcat.org/issn/0971-8257). Retrieved 25 August 2026. 18. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-18)["10 years of UPI: 66 crore transactions a day and other figures that stand out - CNBC TV18"](https://www.cnbctv18.com/photos/india/upi-ten-years-india-digital-payments-transaction-growth-npci-real-time-payments-19976236.htm). _CNBCTV18_. 25 August 2026. Retrieved 25 August 2026. 20. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-20)["UPI Product Overview"](https://www.npci.org.in/what-we-do/upi/product-overview). National Payments Corporation of India. Retrieved 16 March 2026. 81. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-81)["UPI: India built a digital payments miracle. Now comes the bill"](https://www.bbc.com/news/articles/c8xnwqe00v1o). _[www.bbc.com](http://www.bbc.com)_. 16 August 2026. Retrieved 24 August 2026. 82. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-82)["Government may allow fees on UPI payment above Rs 2,000"](https://timesofindia.indiatimes.com/india/government-may-allow-fees-on-upi-payment-above-rs-2k/articleshow/132880274.cms). _The Times of India_. 5 August 2026. [ISSN](https://en.wikipedia.org/wiki/ISSN_(identifier)) [0971-8257](https://search.worldcat.org/issn/0971-8257). Retrieved 24 August 2026. 83. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-83)["Why UPI MDR's Return Could Widen the Gap Between Large and Small Merchants"](https://www.forbesindia.com/article/news/deep-dive/mdr-reintroduction-ignites-small-vs-big-player-debate/2997348/1). _[www.forbesindia.com](http://www.forbesindia.com)_. Retrieved 24 August 2026. 84. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-84)["Govt. bars bank charges on payments up to ₹2,000 via UPI, RuPay-powered debit cards"](https://www.thehindu.com/business/govt-bars-bank-charges-on-upi-payments-up-to-2k/article71466438.ece). _The Hindu_. Reuters. 15 September 2026. Retrieved 15 September 2026. 85. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-85)["UPI remains free for consumers, payments over Rs 2,000 to merchants will attract 0.4% fee"](https://www.indiatoday.in/business/story/upi-remains-free-for-consumers-payments-over-rs-2000-to-merchants-will-attract-04-fee-2995255-2026-09-15). _India Today_. 15 September 2026. Retrieved 16 September 2026. 86. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-86)["0.4% MDR kicks in from October 15 for ₹2,000-plus UPI payments"](https://www.business-standard.com/finance/news/npci-sets-0-4-fee-on-upi-merchant-payments-above-2-000-effective-oct-15-126091501061_1.html). _Business Standard_. 16 September 2026. Retrieved 16 September 2026. 240. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-240)["India-Israel sign pact to link UPI systems in major digital payments push"](https://www.moneycontrol.com/world/india-israel-sign-pact-to-link-upi-systems-in-major-digital-payments-push-know-where-else-the-platform-works-article-13844648.html). _Moneycontrol_. 26 February 2026. Retrieved 26 February 2026. 242. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-242)["Indian travellers can now use UPI at QR-code merchants in Cambodia"](https://www.thehindubusinessline.com/money-and-banking/upi-acceptance-at-qr-code-merchants-goes-live-in-cambodia/article71058268.ece). _BusinessLine_. 4 June 2026. Retrieved 18 June 2026. 243. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-243)Sarkar, Subhojit (2 June 2026). ["Indian travellers can now make UPI payments in Cambodia via KHQR network"](https://www.fortuneindia.com/business-news/indian-travellers-can-now-make-upi-payments-in-cambodia-via-khqr-network/141020). _Fortune India_. Retrieved 18 June 2026. 244. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-244)Singh, Rohit (6 June 2026). ["UPI Payments Launch in Cambodia for Indian Travellers"](https://www.medianama.com/2026/06/223-india-launches-upi-qr-payments-cambodia/). _medianama.com_. Retrieved 18 June 2026. 252. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-252)Shinde, Shivani (8 September 2026). ["Bank of America works on Zelle-UPI bridge for cross-border payments"](https://www.business-standard.com/companies/people/bank-of-america-works-on-zelle-upi-bridge-for-cross-border-payments-126090701041_1.html). _[Business Standard](https://en.wikipedia.org/wiki/Business_Standard)_. Retrieved 12 September 2026. 253. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-253)["Zelle to expand peer-to-peer payment service to India this year"](https://economictimes.indiatimes.com/tech/technology/zelle-to-expand-peer-to-peer-payment-service-to-india-this-year/articleshow/131661250.cms?from=mdr). _The Economic Times_. 11 June 2026. [ISSN](https://en.wikipedia.org/wiki/ISSN_(identifier)) [0013-0389](https://search.worldcat.org/issn/0013-0389). Retrieved 12 September 2026.
2. Aanytime-capital.com › learn › payment-rails › what-is-upiEN

   What Is a UPI Payment? India's Instant System (2026)

   A UPI payment moves rupees between bank accounts in seconds, at any hour, addressed by a UPI ID or a QR code and authorised with a PIN on the payer's phone.
3. Bbbc.com › news › articles › c8xnwqe00v1oEN

   India built a digital payments miracle. Now comes the bill. - BBC

   News Earth Audio Video Live # India built the world's biggest digital payments miracle. Now comes the bill Save For most Indians, paying by Unified Payments Interface (UPI) has become almost absurdly routine. Scan a QR code, tap a few buttons and the money moves instantly. There is no card machine, no cash, and - most importantly - for the user, no visible fee. India has [paved the way](https://thewire.in/banking/lok-sabha-passes-bill-allowing-govt-to-permit-banks-others-to-charge-for-upi-transactions) for banks and payment companies to charge merchants a fee on UPI transactions, potentially ending a decade-long experiment in free digital payments. The government has yet to decide the rate or exactly where it will apply, but proposals under discussion include a merchant discount rate (MDR) of 0.3-0.5% - a small fee paid by a business to the banks and payment companies that process its UPI payments - on larger transactions at big businesses. The government [says](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2296594&reg=48&lang=2) consumers and person-to-person UPI payments will remain free. If merchant fees are introduced, they will apply only to some transactions above a set threshold, at a nominal rate, meaning most UPI payments will remain free. A man stands beside a horse fitted with a payments QR code near its eye, allowing riders to pay digitally after a beach ride According to official data, in July alone, there were 23.6 billion UPI transactions worth 29.87 trillion rupees ($313.5bn; £232.2bn). Fintech apps such as PhonePe and Google Pay account for most UPI payments. In the financial year just ended, the figure was about 241.6 billion transactions - almost 12,000 times the volume in UPI's first full year. UPI is not merely big. The system is run by the National Payments Corporation of India, a non-profit entity, with banks and technology companies providing the consumer-facing services. A vegetable seller, taxi driver or small shopkeeper does not need to buy a card terminal to accept UPI. A printed QR code will do. A woman scans a QR code after buying vegetables at a market in Kolkata It helped drive it. "Our study suggests that merchant acceptance is not just a result of UPI growth, but one of its key drivers," Motheram says. Districts with stronger merchant networks tended to see higher UPI adoption. One option reportedly under discussion would target transactions above 2,000 rupees at larger merchants, leaving small businesses and low-value payments untouched. Transactions above that threshold account for only about 4% of merchant-payment volumes but roughly 67% of their value, according to brokerage firm Jefferies. That could generate a sizeable new revenue stream - up to a billion dollars, by one [estimate](https://x.com/refsrc/status/2084486790405345404?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2084486790405345404%7Ctwgr%5E76a20d07d91e080db36c073d97839e992897e0cf%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.medianama.com%2F2026%2F08%2F223-rbi-governor-upi-mdr-premature%2F) - for banks and payment companies while leaving the everyday smaller payment to the neighbourhood grocer effectively unchanged. UPI may feel free, but it is not costless. Even street food vendors accept digitial payments in India Servers have to run, transactions settled, fraud detected and the system protected against cyberattacks. As Sanjay Malhotra, governor of the Reserve Bank of India (RBI), the country's central bank, recently put it: "Someone will have to pay the cost." But the economics become trickier the further down the merchant chain a fee travels. "Even a small fee could matter if it changes the incentives of small merchants operating on thin margins," he says. The effect, he argues, depends heavily on the design of the charge. A fee imposed on a large retailer is very different from one imposed on a tiny shop or informal trader. Yet it is the world's [fastest-growing real-time payment system,](https://www.rebill.com/en/blog/pix-your-ticket-to-the-brazilian-market) used by more than 140 million people and 14 million companies, with more than four billion transactions a month averaging about $88 each. The second was about getting hundreds of millions of people and millions of merchants onto it.
4. Sstripe.com › resources › more › unified-payments-interface-upiEN

   What is Unified Payments Interface (UPI)? - Stripe

   1. [Introduction](https://stripe.com/resources/more/unified-payments-interface-upi#introduction) 4. [How does UPI work?](https://stripe.com/resources/more/unified-payments-interface-upi#how-does-upi-work) 1. [How to send and receive payments](https://stripe.com/resources/more/unified-payments-interface-upi#how-to-send-and-receive-payments) 11. [Shifting customer preference](https://stripe.com/resources/more/unified-payments-interface-upi#shifting-customer-preference) 13. [How do businesses accept UPI payments?](https://stripe.com/resources/more/unified-payments-interface-upi#how-do-businesses-accept-upi-payments) 1. [QR code payments](https://stripe.com/resources/more/unified-payments-interface-upi#qr-code-payments) 14. [App-to-app payments](https://stripe.com/resources/more/unified-payments-interface-upi#app-to-app-payments) Unified Payments Interface (UPI) changed how money moves in India. Below, we’ll explain how UPI works, why it scaled so quickly, and what it can do for businesses. ## What is UPI? Unified Payments Interface is India’s [real-time](https://stripe.com/resources/more/real-time-payments-explained) payment system. UPI moves money instantly between bank accounts via a mobile device. UPI connects hundreds of Indian banks through one interface. With a [UPI app](https://www.npci.org.in/what-we-do/upi/3rd-party-apps) such as PhonePe, Google Pay, Paytm, or Amazon Pay, you can send money from your bank account to another account as long as the owner of the second account has a UPI ID (also called a virtual payment address or VPA). ## How does UPI work? ### How to send and receive payments To get started with UPI payments, you’ll need a VPA, commonly called a UPI ID. This is usually in the format name@bank or mobilenumber@provider. This ID links to your bank account and is used to send and receive money via UPI. UPI supports multiple ways to initiate payments: ### Settlement timing UPI works 24/7, including weekends and holidays. Once a payment is authorized, the UPI switch clears and settles the transaction instantly between the bank accounts. ### Interoperability UPI was designed as an open network. [More than 550 Indian banks](https://www.europeanpaymentscouncil.eu/news-insights/insight/upi-revolutionising-real-time-digital-payments-india) are integrated into one real-time switch operated by the National Payments Corporation of India (NPCI). That switch lets a user with an account at one bank send money to someone with an account at another bank without issue. Whether you use Google Pay, PhonePe, or a bank’s own app, all of them operate on the same UPI infrastructure. Any user can pay any other user, regardless of which app or bank either party uses, and businesses can accept UPI no matter which app the customer uses. ## Why has UPI adoption surged among businesses in India? ### New cost structure Unlike credit cards, UPI lets businesses keep 100% of the revenue.
5. Bblog.orbitremit.com › what-is-upi-india-guideEN

   What Is UPI? India's Real-Time Payment System Explained

   UPI stands for Unified Payments Interface — a real-time payment system developed by the National Payments Corporation of India (NPCI) and ...
6. Ggrow.cleverbridge.com › blog › upi-india-saas-digital-goodsEN

   UPI in India: How It Works for SaaS and Digital Goods

   - [Expanding in India? UPI is the Payment Method You Can’t Ignore](https://grow.cleverbridge.com/blog/upi-india-saas-digital-goods) - [Tweet on Twitter](https://twitter.com/intent/tweet?url=https%3A%2F%2Fgrow.cleverbridge.com%2Fblog%2Fupi-india-saas-digital-goods&text=Expanding+in+India%3F+UPI+is+the+Payment+Method+You+Can%E2%80%99t+Ignore) 4. [Where UPI fits in India's payment mix](https://grow.cleverbridge.com/blog/upi-india-saas-digital-goods#where-upi-fits-in-india's-payment-mix) For many digital transactions, that means UPI: India’s real-time, bank-linked payment system, now central to everyday digital commerce. For global digital businesses expanding into India, enabling UPI is about aligning checkout with regional payment behavior. UPI is already deeply embedded in how many consumers handle digital transactions, which makes local payment support an important part of reducing friction and improving checkout performance. ## **What is UPI?** Unified Payments Interface (UPI) is India’s real-time payment system for bank-to-bank transactions. It allows customers to pay directly from a bank-linked app, without entering card details at the point of sale. At checkout, the customer selects UPI and approves the payment in their UPI app, often by scanning a QR code. For recurring payments, UPI AutoPay lets the customer authorize an e-mandate so future charges can be processed within approved limits. Behind the scenes, UPI is supported through a local payment service provider (PSP), allowing transactions to be routed domestically and handled in line with Indian regulatory requirements. That helps keep the payment flow fast and locally aligned, rather than forcing a less natural cross-border path. ## **Why Cleverbridge is introducing UPI** In India, checkout expectations are already well established. ## **The scale of UPI in India** The system processes over 20 billion transactions per month, with monthly transaction values exceeding ₹28 trillion (approximately $307 billion), according to the latest data from the [National Payments Corporation of India (NPCI)](https://www.npci.org.in/what-we-do/upi/product-statistics). UPI accounted for [more than 84%](https://www.business-standard.com/industry/banking/upi-races-ahead-accounts-for-84-of-total-digital-payments-in-fy25-125100300850_1.html) of total digital payment transaction volume in India in 2025, meaning more than four out of five digital payments in the country now flow through UPI. In fact, [UPI accounts for nearly half](https://economictimes.indiatimes.com/tech/technology/upi-recognised-as-worlds-largest-real-time-payment-system-by-imf-accounts-for-49-of-global-transactions/articleshow/125838772.cms?from=mdr) of all global real-time payment transactions. These figures add up to show how central UPI has become to digital transacting in India. Thanks to UPI, payments are expected to be real-time, direct, and frictionless — from merchants to peer transfers to the subscription economy. UPI QR codes are now ubiquitous across India’s retail landscape, reinforcing how deeply embedded the system has become in everyday commerce. ## **Where UPI fits in India's payment mix** India’s payment mix is increasingly shaped by mobile, bank-linked behavior. From our Indian buyer data in [_The Friction Report_](https://grow.cleverbridge.com/friction-report), 42% said digital wallets are their preferred way to purchase software, compared to 18% for cards and 8% for bank transfers. This preference points in UPI’s direction, as everyday payments are increasingly mobile, app-led, and real-time. As far as how UPI stacks up against Net Banking, both serve unique purposes. They are less competing options than complementary ones, with UPI capturing more day-to-day consumer payments, while Net Banking supports more high-value transactions. UPI vs Net Banking | | | | | |-|-|-|-| | Payment Method | Best Fit | Checkout Experience | Recurring Payments | | UPI | Everyday digital commerce, mobile-first checkout, B2C SaaS | Real-time approval in UPI app (via QR code) | Supports AutoPay for eligible recurring transactions | | Net Banking | Higher-value purchases, enterprise billing, B2B SaaS | Redirects customers through online banking to complete payment | Commonly used to authenticate eNACH mandates for recurring billing | ## **Bottom line** UPI is central to how digital commerce operates in India. Businesses that support it can reach more customers, reduce checkout friction, and improve payment performance. By adding UPI support, along with Net Banking, Cleverbridge makes it easier for software businesses to operate in India’s rapidly growing market, without needing to navigate local payment complexity on their own. If India is part of your growth strategy, supporting UPI should be part of your payment strategy. [Click here](https://docs.cleverbridge.com/docs/cleveressentials/payments-taxes/payment-options/other-payment-options/upi/).
7. Iinvestopedia.com › terms › u › unified-payment-interface-upi.aspEN

   Unified Payments Interface (UPI): How It Works and Its Benefits

   UPI uses Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) for seamless transactions, regulated by the Reserve Bank of ...
8. Rreuters.com › world › india › indias-upi-fee-shake-up-what-changes-why-it-matters-2026-09-16EN

   India's UPI fee shake-up: What changes and why it matters

   [Skip to main content](https://www.reuters.com/world/india/indias-upi-fee-shake-up-what-changes-why-it-matters-2026-09-16/#main-content) MUMBAI, Sept 16 (Reuters) - Using mobile phones to scan a QR code for payments has become near ubiquitous behaviour in India over the last decade, thanks to a widely used homegrown network, the Unified Payments Interface (UPI). But ​after six years of free use, regardless of size or type of payment, India has decided [to ‌start charging](https://www.reuters.com/world/india/india-payments-authority-sets-04-fee-upi-merchant-payments-above-2000-rupees-2026-09-15/) merchants a fee of 0.4% for transactions of more than 2,000 rupees ($21), known as the Merchant Discount Rate (MDR), with some exclusions, though person-to-person transfers remain free. Shares of Indian payment firms [rose](https://www.reuters.com/world/india/indias-payment-firms-jump-upi-fee-boosts-revenue-outlook-2026-09-16/) on Wednesday as investors saw the MDR opening fresh revenue lines ​for banks and payment firms that have so far absorbed the costs of such transactions. ## HOW BIG ​IS UPI? In August, UPI processed a total of 24.5 billion transactions worth 29,823 billion rupees ⁠for more than 550 million users, official data show. UPI has a share of 84% in India's digital payments ​by volume and a 49% share of global real-time payment volumes, the government said on Tuesday. Walmart's PhonePe and Alphabet's ​GooglePay had about 80% market share by value of UPI transactions in August. ## WAS UPI ALWAYS FREE? Its pricing model at launch in 2016 included nominal charges temporarily waived in 2017 when India demonetised a large chunk of its high-denomination currency notes. Advertisement · Scroll to continue ## WHAT FEE WILL BE IMPOSED? A fee ​of 40 basis points applies to transactions above 2,000 rupees with merchants, along with carve-outs for payments to small merchants and those operating ‌in ⁠rural or semi-urban areas. Widely used categories such as telecom, railways and mutual fund or stock investments will attract lower charges. Fees are capped at 300 rupees on transactions exceeding 75,000 rupees. ## WHY DOES UPI NEED THE MERCHANT DISCOUNT RATE? India's ​government, the central bank and payments authority say, the MDR will help make UPI self-sustainable, give a fillip to expansion in rural and semi-urban ​areas, and keep a large majority of payments free of charge. ($1=95.9275 rupees) Advertisement · Scroll to continue Reporting by Jaspreet Kalra; Editing by Clarence Fernandez Our Standards: [The Thomson Reuters Trust Principles., opens new tab](https://www.thomsonreuters.com/en/about-us/trust-principles.html) - X - Facebook - Linkedin - Email - Link [Purchase Licensing Rights](https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&utm_campaign=rcom-rcp-lead)
9. Ffacebook.com › Persistclasses › posts › upi-has-become-a-part-of-our-everyday-lifefrom-paying-at-local-shops-to-sending-EN

   India's new UPI rules 2026 and transaction limits - Facebook

   From transaction limits and stricter KYC checks to increased monitoring of high-value UPI activity, the system is getting tighter. What this ...
10. Eeuropeanpaymentscouncil.eu › news-insights › insight › upi-revolutionising-real-time-digital-payments-indiaEN

    UPI: revolutionising real-time digital payments in India

    # UPI: revolutionising real-time digital payments in India 26 June 24 Share This Continuing our series on instant payments beyond Europe, we delve into the National Payments Corporation of India (NPCI) and its widely acclaimed Unified Payments Interface (UPI), a mobile-based real-time payment system facilitating instant personal and merchant transactions. ## How many users and payment service providers (PSPs) participate in UPI, and what are the key numbers and growth trends? Currently, there are ~350 million active UPI users in India and over 340 million QR codes at various merchant locations to facilitate payments in a seamless digital manner. Additionally, **more than 550 banks** are integrated into the UPI framework, contributing to its extensive reach and utility. ## What are the main use cases supported on UPI? What new opportunities does UPI open up for Indian consumers, merchants, and payment service providers? UPI supports multiple use cases such as Person-to-Person (P2P), Person-to-Merchant (P2M), Request-to-Pay, UPI on Delivery, Standing Instructions, IPO investments etc. To elaborate on a few, **request-to-pay** enables individuals or merchants to request money from the payer via UPI, simplifying transactions. With **recurring payments**, UPI supports auto-debit functionality for utilities, entertainment subscriptions, and other services. Additionally, with **UPI for international payments**, Indians can currently pay select merchants in Bhutan, France (ecommerce), Mauritius, Nepal, Singapore, Sri Lanka, and the United Arab Emirates (UAE). • **Consumers:** UPI opens up a more inclusive financial ecosystem, enabling instant, 24/7 transactions at virtually no cost. It supports a range of transactions from high-value payments to micro-transactions, increasing financial accessibility. • **Merchants:** For merchants, UPI simplifies the collection of payments directly from the customer’s bank account without needing to handle cash or store sensitive customer information, mitigating risk and enhancing customer trust. • **Payment Service Providers (PSPs)**: PSPs benefit from the growing volume of transactions and the expanded market reach. UPI's framework allows them to innovate on top of its infrastructure to develop customized payment solutions for diverse market needs. ## What major factors are likely to drive the evolution of the Indian payments landscape and UPI over the next five years? • **For Indians residing in India:** Features such as UPI Lite X, UPI 123PAY and Hello! ## Your reactions Your name will appear next to your comment. Email addresses will not be published. G Start the discussion…  Comment ## Update from EPC and insights on payments in Europe delivered to your inbox monthly Email Address Submit - Customize Cookie Settings