Search results for how does UPI payment work in India 2026 2026 in India explained in India
- en.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. 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. 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). [[24]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-24) After the decision of the [Ministry of Finance](https://en.wikipedia.org/wiki/Ministry_of_Finance_(India)) to nullify the [merchant discount rate](https://en.wikipedia.org/wiki/Merchant_discount_rate) (MDR) in 2019 from UPI, the number of low value transactions skyrocketed, making huge gains on real-time transaction volume data. The transaction limit was enhanced from ₹100,000 to ₹200,000 in March 2020. [[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. ## Internationalization [[133]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-133) As per NPCI and RBI mandate, banks, payment service providers (PSPs) and third-party application providers (TPAPs) in India must enable international acceptance through UPI from 30 September 2022. Users will be able to pay in international currency directly from Indian bank accounts. ## Acceptance ### India (Domestic) United Arab Emirates and Singapore, both of which have sizeable Indian expatriate populations, have begun regarding the operation of UPI in those countries; this would also facilitate ease of payment for Indian tourists traveling there. [[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) In August 2021, [Dish TV](https://en.wikipedia.org/wiki/Dish_TV) introduced UPI scan and pay feature for the first time in a nationwide rollout due to [COVID-19](https://en.wikipedia.org/wiki/COVID-19_pandemic_in_India) restriction and heavy demand for no contact digital payment solutions. [[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. [[182]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-182) On 3 January 2022, [SonyLIV](https://en.wikipedia.org/wiki/SonyLIV) launched UPI AutoPay for all its subscribers. [[184]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-184) Tata Mutual Fund with CAMSPay enabled UPI AutoPay feature for [Systematic Investment Plan](https://en.wikipedia.org/wiki/Systematic_investment_plan) (SIP) from July 2022.[[185]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-185) [Google Play](https://en.wikipedia.org/wiki/Google_Play) started supporting UPI AutoPay for subscription services from 15 November 2022. [[186]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-186) [Bangalore Metropolitan Transport Corporation](https://en.wikipedia.org/wiki/Bangalore_Metropolitan_Transport_Corporation) (BMTC) & [Tamil Nadu State Transport Corporation](https://en.wikipedia.org/wiki/Tamil_Nadu_State_Transport_Corporation) (TNSTC) will start UPI based ticketing system from 2023. [[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. [[189]](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_note-189) On 25 January 2024, [North Western Karnataka Road Transport Corporation](https://en.wikipedia.org/wiki/North_Western_Karnataka_Road_Transport_Corporation) (NWKRTC) achieved a significant milestone by processing over one lakh UPI transactions, valued at over ₹2 crore. 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 12. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-12)["India's UPI Revolution"](https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154912&ModuleId=3). _PIB India_. 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. 177. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-177)["UPI AutoPay"](https://www.npci.org.in/what-we-do/upi/upi-autopay). _National Payment Corporation of India_. [Archived](https://web.archive.org/web/20210819020531/https://www.npci.org.in/what-we-do/upi/upi-autopay) from the original on 19 August 2021. Retrieved 18 August 2021. 228. [↑](https://en.wikipedia.org/wiki/Unified_Payments_Interface#cite_ref-228)["India launches UPI at department store in France"](https://www.thehindubusinessline.com/money-and-banking/india-launches-upi-at-department-store-in-france/article71111839.ece). _BusinessLine_. 17 June 2026. Retrieved 18 June 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. 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.
- bbc.com › news › articles › c8xnwqe00v1oEN
UPI: India built a digital payments miracle. Now comes the bill.
News Business Technology 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®=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. Rather than building a closed system around a single dominant app, India created common digital plumbing on which competing companies could operate. 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. "If charges are limited to large merchants or higher-value transactions, the effect on broad-based adoption may be modest. 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. For years, the government has helped compensate banks and payment firms for providing a service that has effectively been treated as public infrastructure. 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. More than 550 million Indians use UPI for digital payments It wants to make UPI financially sustainable without disturbing the conditions that helped make it ubiquitous. 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 first phase was about creating the network. The second was about getting hundreds of millions of people and millions of merchants onto it. The third is now beginning: figuring out how to pay for the system without making it less useful. The bigger risk may not be that Indians suddenly abandon UPI because a large retailer is charged a fraction of a percentage point: experts say its network effects are now too powerful for that. The risk is subtler.
- facebook.com › bosswallahtamil › posts › upi-payment-rule-2026-new-2000-rule-for-merchants-explained-upi-upirules-upipaymEN
UPI Payment Rule 2026: New ₹2,000 Rule for Merchants ...
The video also explains that larger payments of over ₹2,000 are not free and that customers are not required to pay any charges. Furthermore, ...
- pib.gov.in › PressReleasePage.aspxEN
UPI completes 10 years, emerges as world's largest real-time ...
# UPI completes 10 glorious years, Emerges as World’s Largest Real-Time Payments Platform, Anchoring India’s Digital Economy ### Transaction volume surges nearly 12,000-fold in last 10 years, Value exceeds ₹314 lakh crore in FY 2025–26, reflecting deep nationwide adoption Over 700 banks onboarded as UPI captures nearly 49% of global real-time payments, driving high-frequency retail usage and inclusive digital growth 30 APR 2026 7:10PM by PIB Delhi This simultaneous expansion in both volume and value highlights UPI’s deepening role in supporting high‑frequency retail payments. Each bank functions as a **Remitter PSP** (processing outgoing transactions) and/or a **Beneficiary PSP** (receiving funds), with NPCI monitoring performance metrics for all participants. Person‑to‑merchant (P2M) transactions account for 63% of total transaction volume, reflecting UPI’s extensive use for high‑frequency, low‑value retail payments. In contrast, person‑to‑person (P2P) transactions dominate transaction value, contributing 71%, indicating their use for higher‑ticket transfers between individuals. **Transaction Distribution by Ticket Size, Micro-Payments Dominate** In FY2026, UPI transactions totalling 24,162 crore reflected the platform’s deep integration into everyday digital payment usage across the country. with particularly robust momentum in the merchant segment. P2M transactions were largely driven by small-ticket payments, with 86% below ₹500, highlighting UPI’s deep integration into routine retail and day-to-day commerce, even as higher-value transactions continued to expand. With over 66 crores transactions processed daily, UPI has surpassed global payment network, reinforcing India’s position as the world leader in instant, secure, and inclusive digital payments. | | | |-|-| | **Country / Region** | **Status** | | **Singapore** | Operational, linked with Singapore's PayNow for cross-border transfers | | **Bhutan** | Operational, NPCI-enabled real-time cross-border payments | 30 APR 2026 7:10PM by PIB Delhi This simultaneous expansion in both volume and value highlights UPI’s deepening role in supporting high‑frequency retail payments. Each bank functions as a **Remitter PSP** (processing outgoing transactions) and/or a **Beneficiary PSP** (receiving funds), with NPCI monitoring performance metrics for all participants. Person‑to‑merchant (P2M) transactions account for 63% of total transaction volume, reflecting UPI’s extensive use for high‑frequency, low‑value retail payments. In contrast, person‑to‑person (P2P) transactions dominate transaction value, contributing 71%, indicating their use for higher‑ticket transfers between individuals. **Transaction Distribution by Ticket Size, Micro-Payments Dominate** In FY2026, UPI transactions totalling 24,162 crore reflected the platform’s deep integration into everyday digital payment usage across the country. with particularly robust momentum in the merchant segment. P2M transactions were largely driven by small-ticket payments, with 86% below ₹500, highlighting UPI’s deep integration into routine retail and day-to-day commerce, even as higher-value transactions continued to expand. With over 66 crores transactions processed daily, UPI has surpassed global payment network, reinforcing India’s position as the world leader in instant, secure, and inclusive digital payments. | | | |-|-| | **Country / Region** | **Status** | | **Singapore** | Operational, linked with Singapore's PayNow for cross-border transfers | | **Bhutan** | Operational, NPCI-enabled real-time cross-border payments | ## Cookies on this website We use essential cookies to make this website work. We also set analytics cookies when you arrive, so we can see how the site is used and improve it - you can switch these off below or at any time from the Cookie Policy page. Cookies from embedded social media content are set only if you allow them. [Read our Cookie Policy](https://www.pib.gov.in/CookiePolicy.aspx)
- blog.orbitremit.com › what-is-upi-india-guideEN
What Is UPI? India's Real-Time Payment System Explained
use UPI as of 2026, UPI connects hundreds of Indian banks through a single interface. Every UPI user has a UPI ID — a unique identifier linked ...
- grow.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** UPI’s impact is best understood through its scale. 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/).
- indusind.bank.in › iblogs › savings-account › upi-payment-new-rules-2026EN
What are the New UPI Payment Rules in 2026? | - IndusInd Bank
What are the New UPI Payment Rules in 2026?  # What are the New UPI Payment Rules in 2026? [](https://myaccount.indusind.bank.in/SavingsAccount/index.aspx?utm_source=website&utm_medium=BlogBanner-SA&utm_campaign=mktgothers) **_Summary_** - _UPI remains free for customers for most everyday transactions, including person-to-person (P2P) transfers and merchant payments up to ₹2,000._ - _Post Diwali 2026, a 0.4% MDR applies to certain merchant transactions above ₹2,000, with a maximum cap of ₹300 per transaction._ - _The MDR framework primarily affects the merchant payment ecosystem and is not a direct charge on customers._ - _Eligible small merchants under the P2PM framework continue to enjoy zero MDR benefits._ Since its launch in 2016, the Unified Payments Interface (UPI) has transformed India’s digital payments landscape by enabling fast, convenient, and largely free money transfers. However, following the proposed Merchant Discount Rate (MDR) framework for select person-to-merchant (P2M) UPI transactions, many users have been questioning whether UPI payments will remain free. While the implementation of these charges was expected from 15 October 2026, the National Payments Corporation of India (NPCI) has deferred the rollout until after Diwali 2026, with a revised implementation date yet to be announced. The deferment does not indicate that the proposed charges have been withdrawn, making it important for users and merchants to stay updated on future developments. Only certain merchant transactions may now involve charges. Let’s understand how the new rules work. ## **What Are the UPI Charges for Different Types of Transactions?** From October 15, 2026, eligible person-to-merchant (P2M) transactions above ₹2,000 will attract a 0.4% MDR, capped at ₹300 per transaction for payments of ₹75,000 or more. To better understand how this works, consider a few examples. For a UPI merchant payment of ₹3,000, the applicable MDR would be ₹12, while a transaction of ₹50,000 would attract an MDR of ₹200. Lastly, if you make a payment of ₹1 lakh, the MDR will not exceed ₹300. ## **What are the UPI Charges for Customers and Merchants?** One of the biggest misconceptions around the new UPI rules is that consumers must pay a fee for transactions exceeding ₹2,000. But in reality: ## **Bank Account UPI vs Wallet UPI: A Quick Comparison** | | | | |-|-|-| | Feature | Bank Account UPI | Wallet UPI (PPI) | | Linkage | [Savings Account](https://www.indusind.bank.in/in/en/personal/accounts/saving-account.html)/Current Account | Prepaid Wallet | | Fund Storage | Directly in Bank Account | Stored Wallet Balance | | Popular Use Cases | Daily transfers and payments | Small-value digital spending | | P2P Transfers | Free | Generally Free | | Merchant Payments up to ₹2,000 | Free | May be subject to interchange framework | ## **Conclusion** UPI continues to be one of the most affordable and convenient payment methods in India. While the new MDR framework, effective after Diwali 2026, will brins charges for certain merchant transactions above ₹2,000, consumers can continue using UPI for everyday payments without worrying about transaction fees. Most person-to-person transfers and small merchant payments remain free, while the newly introduced charges primarily apply within the merchant payment ecosystem. Understanding the difference between bank-account UPI, wallet UPI, and RuPay Credit Card on UPI can help users make informed payment choices and continue enjoying the benefits of India’s leading digital payment platform. ## **FAQs** ### **1. Is GST charged separately on a UPI transaction?** No, customers do not pay any GST on the standard UPI payments linked directly to a bank account.
- reuters.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. ## 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. In 2020, all charges were scrapped, kicking off a zero-MDR regime set to end on October 15, 2026. ## 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 - X - Facebook - Linkedin - Email - Link [Purchase Licensing Rights](https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&utm_campaign=rcom-rcp-lead)
- transactbridge.com › blog › best-ways-to-accept-upi-payments-india-2026-guideEN
Best Ways to Accept UPI Payments in India (2026 Guide for ...
# Best Ways to Accept UPI Payments in India (2026 Guide for Global Companies) share visibility 11892  UPI has become the world’s fastest-growing real-time payment system, processing more than **12+ billion monthly transactions** in India. For global companies selling SaaS, digital goods, gaming, travel platforms or subscriptions, accepting UPI payments is now essential to improve conversions and reduce failed card transactions. ### **Most foreign companies cannot accept UPI directly because they do not have an Indian entity, GST, or local bank account.** This guide explains the **best ways to accept UPI payments in India in 2026**, especially for international merchants - and how the **Merchant of Record (MoR) model** solves this challenge. # **Best Ways to Accept UPI Payments in India (2026)** ## **Method 1: Use an Indian Payment Gateway (Only for Indian Companies)** Indian payment gateways allow UPI payments: - Razorpay - Cashfree - PayU - CCAvenue But they require: ✔ Indian company ✔ Indian bank account ✔ GST ✔ KYC & compliance ## **Method 2: Integrate UPI via a Global Provider (Limited Support)** Some global payment processors claim to support UPI, but usually: # **Final Recommendation: Best Way to Accept UPI Payments in India in 2026** ### [**Transact Bridge**](http://www.transactbridge.com/) **helps global companies accept UPI and Indian payment methods with zero local setup.** ➡️ Sell legally in India
- equentis.com › blog › upi-transaction-new-rules-2026-complete-guide-for-users-and-merchantsEN
UPI Transaction New Rules 2026: Complete Guide for Users ...
The UPI transaction new rules for 2026 bring important changes around merchant payments, transaction limits and authentication, while regular person to ...