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UPI's Decade of Explosive Growth Outpaces Regulatory Framework
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CNBC TV18•25-09-2026, 08:35
UPI's Decade of Explosive Growth Outpaces Regulatory Framework
- •UPI, launched in 2016, processed 24,162 crore transactions worth ’314 lakh crore in FY2025-26, a 13,000-fold rise in volume over a decade.
- •The IMF recognizes UPI as the world's largest real-time payment system, handling nearly half of all global real-time payment volume.
- •Despite its growth, two dominant players, PhonePe (46%) and Google Pay (33%), control 79% of UPI transactions, far exceeding the NPCI's 30% market cap.
- •NPCI has repeatedly deferred the market share cap and lifted onboarding limits for WhatsApp Pay, raising questions about its regulatory consistency.
- •The proposed New Umbrella Entity (NUE) to de-risk and innovate the sector has been put on hold, and a Parliamentary Committee is reviewing UPI's regulation and supervision.
Key Questions Answered
As of May 2026, PhonePe held just over 46% and Google Pay held just under 33% of UPI transaction volume, giving them a combined share of 79%.
In its first full year following its August 2016 launch, UPI processed a modest 1.78 crore transactions, whereas a decade later in FY2025-26, the network processed approximately 24,162 crore transactions valued at nearly ₹314 lakh crore.
Although about six cohorts applied for the New Umbrella Entity (NUE) license, none of them received it, and the entire authorization process has since been placed into cold storage.
