UPI Crosses 700 Million Daily Transactions as ICICI Begins Charging Aggregators

India’s Unified Payments Interface (UPI) has crossed a landmark 700 million daily transactions for the first time, doubling its daily usage from two years ago. Concurrently, ICICI Bank has introduced charges for payment aggregators, marking a shift in the previously free UPI ecosystem.

UPI Sees Record Growth: 700 Million Daily Transactions

UPI transactions in July reached a record 19.47 billion, valued at approximately ₹25.08 lakh crore, reflecting a 35% year‑on‑year surge in volume and 22% growth in value. Average daily usage climbed to over 628 million, underlining UPI’s dominance in India’s digital payment ecosystem.

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Expert commentary highlights that in August 2023, UPI daily average stood at about 350 million transactions, rising to 500 million by August 2024—a doubling in just two years. This trajectory indicates strong user adoption and deepening penetration across rural and urban India.

ICICI Bank Becomes First to Charge Payment Aggregators

Meanwhile, ICICI Bank has become the first major lender to impose fees on payment aggregators (PAs) facilitating UPI transactions on merchant platforms. From August 1, 2025, PAs using an ICICI escrow account will be charged 2 basis points per transaction (capped at ₹6), while those without escrow ties pay 4 basis points (capped at ₹10). These charges apply only when funds are not settled directly into an ICICI merchant account.

Industry Impact and the Road Ahead

Industry insiders suggest the move reflects rising infrastructure costs borne by banks for maintaining UPI networks. While consumers and merchants remain unaffected directly, payment aggregators may pass on costs or explore alternate banking partners. Public and private sector banks may adopt similar models based on ICICI’s precedent.

Conclusion

With 700 million transactions each day, UPI has been firmly established in India's payment system. Notwithstanding the milestone, the business model underlying the UPI ecosystem is changing as a result of ICICI Bank's intention to charge payment aggregators. Even if UPI remains the backbone of digital payments in India, these developments might lead to strategic changes among banks and fintechs.