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India’s digital payment system UPI (Unified Payments Interface) has achieved another major achievement on 2 August 2025. On this day, more than 707 million or 70.7 crore transactions were recorded. This figure was shared by the National Payment Corporation of India (NPCI), which shows how fast digital payments are increasing in the country.

Double growth growth

The popularity of UPI has increased wildly in the last few years. In 2023, where its daily transaction was around 35 crores, by August 2024 it increased to 50 crores. Now it has crossed the 70 crore mark. The government aims to bring this number to 1 billion (100 crores) per day by 2026.

What is UPI and how does it work?

UPI is a real-time payment system that allows users to send and receive payment immediately through mobile. It connects several bank accounts with the same app, making the transaction faster, simple and safe. Users can pay only an UPI ID or mobile number, without entering bank details or card numbers.

How did the 700 million figure cross?

On August 2, when the month was beginning, there was a big jump in transactions due to payments like rent, bill and salary by people. The average daily transaction of UPI in July 2025 was around 650 million. In the first week of August, this record broke up to 707 million.

UPI’s success means

More than 70 crore transactions are not just a figure. This shows how UPI has become an important part of India’s financial structure. Today, about 85% of the country’s digital payments are being made through UPI. Business transactions are also growing rapidly and now about 62% of the total UPI transactions is of merchant payments.

Demand for return of MDR

UPI is currently free from merchant discount rate (MDR), so that banks and app companies do not have much income. In such a situation, many fintech companies are pressurizing the government to re -implement the MDR on major transactions, so that the system can become financially durable. RBI is also thinking in this direction.

Which platforms do UPI use?

Today, the major apps using UPI include PhonePe, Google Pay, Paytm, BHIM, Amazon Pay, and many banking apps. This facility has now been integrated into more than 300 banks and it is being used everywhere from grocery store to e-commerce site.

Is UPI challenging cash and traditional banking?

The use of cash transactions and debit cards is decreasing due to expansion of UPI, especially in cities. Although traditional banking is still important for large investment and loan, UPI has become a major option for daily needs. The use of cash in rural areas is still prominent, but the direction of change is clear.