New Delhi, Aug 28: Digital payments made to merchants across India continued to grow strongly in July, reflecting the increasing use of digital transactions by consumers and businesses.
According to a recent report, the value of digital payments to merchants rose 19.6 per cent year-on-year to Rs 11.7 trillion in July. The increase highlights the growing role of digital payment platforms in everyday purchases and business transactions.
The rise comes as digital payments, particularly UPI-based transactions, continue to expand across the country. Official data also shows that UPI recorded 2,366 crore transactions in July 2026, its highest monthly volume since the platform was launched.
The continued growth in merchant payments indicates that digital transactions are becoming increasingly embedded in routine economic activity, from small retail purchases to payments for services and larger commercial transactions.
For merchants, digital payment systems can make it easier to receive money, maintain transaction records and serve customers who prefer cashless payments. For consumers, faster and convenient payment options have made digital transactions a regular part of daily spending.
The expansion of merchant payments is also important for India’s broader digital economy. A larger digital payment ecosystem can improve transaction efficiency, strengthen formal financial activity and support businesses as they adopt technology-driven methods of receiving and managing payments.
UPI remains a major force behind India’s digital payment growth. Its expanding use for person-to-merchant payments has helped bring digital transactions to a wider range of businesses and consumers. Earlier industry data has also shown that merchant payments have increasingly contributed to the overall growth of UPI.
The growth in July comes at a time when policymakers and industry participants are also examining the future structure of merchant payments. Recent discussions around possible merchant charges on certain higher-value UPI transactions have added another dimension to the evolving payments ecosystem.
Overall, the latest figures underline the continued shift towards digital commerce in India. As more merchants accept electronic payments and consumers increasingly rely on smartphones and instant payment systems, digital transactions are becoming an important part of the country’s economic activity.
