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India’s Unified Payments Interface (UPI) recorded a 6% month-on-month decline in February 2026, with transaction volumes falling to 20.39 billion from 21.70 billion in January. This marks the first slowdown after a series of consecutive record-breaking months.

The total transaction value during February reached approximately $323 billion, down 5% from nearly $341 billion in January. The decline is primarily attributed to February being three days shorter than January, directly impacting total monthly volumes.

Despite the monthly dip, daily performance indicators remained strong. The average number of daily transactions increased to 728 million, compared to 700 million in January. Meanwhile, average daily transaction value rose to around $11.6 billion, up from roughly $11 billion in the previous month, reflecting sustained momentum in digital payment usage.

On an annual basis, the system continued to post substantial figures. In 2025, UPI processed approximately 220 billion transactions with a total value of nearly $3.6 trillion, reinforcing its position as one of the world’s largest real-time payment systems by volume and value.

Competition Among Apps

In terms of app-level competition, PhonePe maintained its lead in transaction volume, although its market share experienced a slight decline in favor of competitors. Google Pay retained second place, sustaining a clear duopoly at the top of the market, while smaller applications gradually expanded their presence.

The government-backed BHIM app has also improved its ranking in recent months, surpassing several competitors. Meanwhile, emerging fintech apps are reporting noticeable growth in both transaction volumes and market share.

Expansion is not limited to the domestic market. The National Payments Corporation of India (NPCI) continues to drive UPI’s international rollout through partnerships enabling cross-border QR code payments, introducing the service into several Asian and Middle Eastern markets.

On the policy front, the Indian government allocated approximately $240 million in the 2026–2027 budget to support incentives linked to RuPay cards and low-value UPI transactions. The move aims to deepen digital adoption and further reduce reliance on cash.

Despite February’s monthly decline, core indicators point to sustained structural growth, supported by rising daily averages, geographic expansion, and government backing—suggesting that the slowdown is more seasonal than a shift in long-term momentum.