UPI sets new record with over 700 million transactions in a single day
Crossing 700 million daily transactions is more than just a number. It reflects how deeply UPI is embedded in India's day-to-day financial life. Nearly 85 per cent of all digital payments in India now go through UPI. Its popularity isn't limited to small payments between friends or family; merchant payments make up a growing share, accounting for around 62 per cent of all UPI transactions. This shows that most businesses — both big and small — have embraced the platform. UPI is also challenging global payment giants like Visa and Mastercard in terms of daily volume. The difference? UPI settles payments in real time, while card networks follow delayed settlement models.Still, the rapid growth raises some concerns. Currently, there's no Merchant Discount Rate (MDR) on UPI payments, which means banks and payment apps don't earn much from transactions. Fintech firms and industry bodies have been pushing the government to bring back MDR — at least for big-ticket merchant transactions — to make the system financially sustainable. The RBI has supported this view, saying there must be a long-term revenue model to maintain the system's quality and scale.FAQsWhich platforms support UPI payments?UPI payments are supported by a wide range of apps. The most commonly used ones are Paytm, PhonePe, Google Pay, Amazon Pay, BHIM, and banking apps like SBI Yono, ICICI iMobile, HDFC PayZapp, among others. Popular money lending apps such as Cred and Slice also offer UPI payments. For context, UPI is integrated into over 300 banks across the country and can be used for payments at physical stores, online shopping, bill payments, and even donations.advertisementWill this surge in UPI usage affect traditional banking or cash?Yes, to some extent. As UPI continues to grow, the use of cash and even debit cards is seeing a slow decline, especially in urban areas. Bank transfers through NEFT and IMPS still exist, but are being used less for small transactions. While traditional banking still plays a crucial role — especially for large financial decisions, loans, or investments — UPI is becoming the go-to method for daily transactions. It also pushes India closer to becoming a less-cash economy. That said, rural areas and older generations still rely on cash, so a full shift will likely take more time.- Ends
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