What goes on behind the screen when you pay through UPI? | Explained
UPI enables instant bank-to-bank payments by connecting users’ apps and banks through a system operated by the National Payments Corporation of India; launched in 2016, it has grown into a massive digital payments network and is now being adopted in several countries
The Unified Payments Interface (UPI) is India's leading digital payment platform. In the month of July 2026, it handled an astounding 2,366 crore transactions, equivalent to approximately 7,600 transactions every second, for a total value of nearly ₹30 lakh crore. During the fiscal year 2025-26, UPI facilitated an impressive 24,160 crore transactions, totalling ₹314 lakh crore, accounting for 85% of India's digital payment volume.
The International Monetary Fund (IMF) reported that UPI also constituted a remarkable 49% of all real-time payments globally in 2025.
Consider an individual named Selvi, who has an account with Violin Bank. She wishes to transfer ₹100 to her friend Shankar, whose account is held at Flute Bank. To accomplish this via UPI, Selvi must first instruct her UPI application, which could be Google Pay, PhonePe, or any other compatible app. These applications do not comprehend names like 'Shankar'.
Instead, she must communicate her intent using language that the UPI application can interpret. This language is English and must be written in complete sentences, adhering to the rules of standard grammar and avoiding any abusive or personal remarks, in accordance with community guidelines.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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