India’s UPI network handles more than 19 billion payments a month, representing almost a third of the country’s transactions, according to a McKinsey report dated August 2026. Its scale has made India a digital payments leader, but earning money from that activity remains a challenge.

Card transactions traditionally brought banks fee income. UPI expanded through free access for users and merchants, subsidies on smaller payments and participation by leading banks. With no direct transaction charges, banks need income sources beyond transferring funds. McKinsey argues that low-cost instant payments can help deepen customer relationships.

The report points to loans, insurance distribution and merchant tools as opportunities. Banks in India are already pairing routine UPI usage with premium cards and paid merchant offerings. Fintech firms are also seeking to turn payment users into borrowers or insurance buyers, using transaction information to assess repayment prospects.

RuPay credit card access through UPI illustrates how card providers are adapting rather than competing head-on with the network. McKinsey also notes that instant payments in India and Brazil increasingly support government transfers and commercial activity, displacing some cash and debit card usage.

Separately, Parliament has passed a 2026 taxation amendment bill establishing a framework for possible UPI merchant discount rate charges. The government has said ordinary users and small merchants will retain free access. Any charges would cover only specified large transactions at very low rates; implementation details have not been stated.