Digital Payments India: The recent data regarding UPI transactions has sparked a new debate regarding the speed of digital payments. While in March 2026, UPI had made the biggest record ever since its launch in 2016, in April 2026, there was a slight decline in its speed. This sudden shortage of UPI transactions has surprised everyone.

According to the latest data of National Payments Corporation of India (NPCI), both transaction volume and value had registered a huge record in March 2026. But later the question started arising whether people are becoming disillusioned or it is just a normal ups and downs.

Decline in April after March record

The total value of UPI transactions declined by 1.7% to ₹29.03 trillion in April 2026, compared to ₹29.53 trillion in March. Not only the value, but the number of transactions (volume) has also come down to 22.35 billion. However, if seen on an annual basis, the situation still remains strong. There has been an increase of about 25% in the number of transactions and 21% increase in value.

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Slowdown in FASTag, IMPS and AePS also

Along with UPI, other digital payments have also seen a slight decline in April 2026. Not only UPI, but Fastag and IMPS have also suffered a big blow. Immediate Payment Service (IMPS) declined by about 1% on a monthly basis and the transactions stood at 362 million, while its total value also declined by about 5% to ₹7.01 trillion.

FASTag transactions also declined by about 1.6% to Rs 358 million, while its value declined by 2% to about ₹7,025 crore. Similarly, the biggest decline was seen in Aadhaar Enabled Payment System (AePS), where the number of transactions declined by about 15% and the value by 14%.

Decline in digital payments or seasonal effect?

Even though the recent figures seem worrying at first glance, the other side of the coin tells a different story. Experts say that this decline is not a sign of any major recession, but is the result of ‘March effect’.

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There was a sudden surge in transactions due to the end of the financial year in March 2026, which broke all records in history that month. In fact, the decline that occurred in April is considered to be a normal stability after the same high jump.

Expert opinion and the future of digital payments

Akash Sinha, CEO of Cashfree Payments, said, “This is not a lack of demand, but a seasonal effect.” According to him, the sharp increase in volume as well as value indicates that people are now using UPI for larger and more reliable payments.

Similarly, Anand Kumar, Founder and CEO of PayNearby, says that the digital payment ecosystem is continuously strengthening on a large scale and UPI has now become an important part of the lifestyle of common people. The use of digital payment is also increasing rapidly in rural and small-urban areas, especially small traders are using it.

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