Why UPI transactions saw a MoM dip in April
What's the story
India's digital payment landscape witnessed a slight dip in April, with Unified Payments Interface (UPI) transactions seeing a minor month-on-month decline. The National Payments Corporation of India data showed that the value of UPI transactions fell by 1.7% to ₹29.03 trillion in April from ₹29.53 trillion in March. The volume also decreased by 1.3% to 22.35 billion from the previous month's 22.64 billion transactions.
Seasonal impact
Year-on-year growth shows continued expansion in digital payments
The dip in UPI transactions is largely attributed to year-end seasonality. March 2026 witnessed record-high UPI volumes and values since its introduction in 2016, thus creating a high base for April comparisons. Despite the MoM decline, year-on-year growth remained strong with volumes increasing by 25% and value rising by 21%.
Broader trend
Other payment systems also see MoM decline
The MoM dip in April wasn't just limited to UPI transactions. Other payment systems like Immediate Payment Service (IMPS) and FASTag also saw declines. IMPS transactions fell by 1% to 362 million, while their value dropped by 5% to ₹7.01 trillion. Similarly, FASTag transactions fell by 1.6% with their value easing by 2%.
Expert opinion
Financial year-end payments trigger annual surge
Akash Sinha, Co-founder & CEO of Cashfree Payments, explained the dip in April as a result of March's overperformance rather than weakening demand. He said financial year-end payments usually trigger an annual surge, making the next month look softer. Sinha also emphasized daily transaction averages for a clearer picture of underlying momentum, and noted faster growth in transaction value over volume indicates rising consumer confidence in using UPI for higher-value payments.