UPI to hit 240 billion transactions by FY26, targets 1 billion daily transactions

• Unified Payments Interface (UPI) is projected to reach 240 billion transactions in FY26, up from 185 billion in FY25, marking a 30% growth.
• UPI recorded 131 billion transactions in FY24, with daily transactions averaging 657 million in the current fiscal year.
• The platform crossed 800 million daily transactions in March, aiming for 1 billion daily transactions by next fiscal year.
• Government subsidies for UPI merchant payments are decreasing, with only Rs 2,200 crore allocated for FY26, causing concern among fintechs.
• Fintechs and payment firms are advocating for the reintroduction of Merchant Discount Rate (MDR) of 0.3% for large merchants to ensure sustainable revenue.

Key Questions Answered

Why are fintechs worried about the government's UPI subsidy disbursement for FY26?

Fintechs are concerned about the government's UPI subsidy disbursement for FY26 because the allocated amount is insufficient to cover the costs of processing a large volume of daily transactions at ze

What is the daily transaction goal set by NPCI for UPI, and when is it expected?

The Centre has set a target of one billion transactions a day for UPI, which the platform is on course to achieve later this year.

How could reintroducing MDR on UPI payments benefit fintech companies?

Reintroducing MDR on UPI payments could provide fintech companies with a stable, long-term revenue stream. This would allow them to generate income rather than relying on government subsidies.