Introduction

India's digital payment landscape continues to expand at a breakneck pace. According to the latest data released by the National Payments Corporation of India (NPCI) on Sunday, the Unified Payments Interface (UPI) recorded a massive 28% year-on-year jump in transaction volume for January 2026, reaching 21.70 billion. The total value of these transactions also saw significant growth, climbing 21% annually to hit ₹28.33 lakh crore, underscoring UPI's dominance as the preferred payment mode for the nation.

Key Facts: January Performance
Total Volume

21.70 Billion

Total Value

₹28.33 Lakh Crore

YoY Growth (Vol)

+28%

Daily Avg Volume

700 Million Txns

Daily Avg Value

₹91,403 Crore

Trend Analysis: The Rise of Micro-Transactions

Scan-and-Pay is the New Default

A supporting report by Worldline India highlights a structural shift in how UPI is used. The average ticket size of transactions has decreased from ₹1,363 to ₹1,262. This drop indicates that users are increasingly relying on UPI for small-value, daily necessities—such as buying groceries at Kirana stores, paying for local transport, or purchasing healthcare essentials—rather than just large transfers.

QR Code Proliferation

The ecosystem is supported by a massive infrastructure of 709 million active UPI QR codes (as of recent data). This 21% increase since mid-2024 demonstrates deep penetration into rural markets and dense acceptance networks across pharmacies and transport hubs.

Official Highlights & Sector Insights

Person-to-Merchant (P2M) Dominance

The data suggests that Person-to-Merchant (P2M) transactions are outpacing Person-to-Person (P2P) transfers. While P2P remains strong, the surge in merchant transactions confirms that UPI has effectively replaced cash for retail commerce.

Comparison with IMPS

While UPI soars, the Immediate Payment Service (IMPS) also showed steady growth. In December, IMPS recorded transactions worth ₹6.62 lakh crore, marking a 10% year-on-year increase, serving as a reliable alternative for higher-value instant bank transfers.

Source Information

Primary Source: DD News / NPCI Data Release

Report Referenced: Worldline India Report on Digital Payments

Read Full Report: Click Here to View Official Article

UPI Starts 2026 with a Bang: January Transactions Surge 28% to 21.7 Billion - Image 1

Frequently Asked Questions

Q. What was the total value of UPI transactions in January?
The total transaction value for January stood at ₹28.33 lakh crore, a 21% increase compared to the previous year.
Q. How many transactions happen per day on UPI?
In January, the network processed an average of 700 million transactions every single day.
Q. Why is the "Average Ticket Size" decreasing?
A lower average ticket size (now ₹1,262) means people are using UPI more frequently for smaller, everyday purchases like tea, vegetables, or auto fares, rather than just large bank transfers.
Q. What is the difference between P2P and P2M?
P2P (Person-to-Person) involves sending money to friends or family. P2M (Person-to-Merchant) involves paying a shopkeeper or business, usually by scanning a QR code. P2M is currently growing faster.