Last updated: October 2026
Quick answer: UPI expense tracker apps in India record your spending in one of two ways. Some apps read the transaction SMS alerts that banks send after every UPI, debit card or credit card payment. Others ask you to enter each expense yourself. Popular options include axio (formerly Walnut), ET Money and Monefy. The right choice depends on how much automation you want and how comfortable you are sharing SMS access with an app.
Key Takeaways
- Most automatic expense trackers in India work by reading bank transaction SMS, not by connecting to Google Pay or PhonePe directly.
- Manual entry apps do not need SMS access, but you have to log every expense yourself.
- Some expense tracker apps also offer loans, credit or investment products. Knowing this helps you understand how the app earns money.
- App features, pricing and permissions change often. Always check the official app store listing before you download.
Why UPI Spending Is Hard to Track
UPI makes small payments very fast. A ₹20 tea, a ₹150 auto ride and a ₹499 recharge can all happen in one day without opening a wallet. Because these payments are small and frequent, they are easy to forget. Over a month, these "invisible" payments can add up to a large share of total spending. An expense tracker helps by putting all these payments in one place and grouping them by category.
How UPI Expense Tracker Apps Work
1. SMS-based tracking (automatic)
When you pay through UPI, your bank sends an SMS alert with the amount and account details. SMS-based apps read these transactional messages and turn them into expense entries. This is why such apps can track payments made from Google Pay, PhonePe, Paytm or any other UPI app, as long as your bank sends an SMS for that transaction.
2. Manual entry (you type it in)
You open the app and add each expense yourself. This takes a few seconds per entry. No SMS or bank access is needed.
Insight: SMS-based tracking depends on your bank's SMS format. If your bank changes its message format, or sends alerts only by email or app notification, some transactions may not appear or may be categorised wrongly.
Comparison of Popular Options
App Tracking Method Good Fit For Things to Know axio (formerly Walnut) Automatic, SMS-based People who want hands-free tracking of bank and card spends Also offers loans, Pay Later and other credit products; needs SMS permission ET Money Expense tracking along with investments People who want spending and mutual fund investments in one app Main focus is investments; check current expense features in the app Monefy Manual entry People who want privacy and full control No automatic UPI tracking; you must log every expense Spreadsheet (Google Sheets / Excel) Manual entry People who want a free, fully custom record Needs discipline; no automatic categories Pricing and features change over time. Check the official app store listing for current details.
App Overviews
axio (formerly Walnut)
axio reads transactional SMS from banks and cards to record spends, show bills and track your monthly budget. Walnut users will find the same money manager under the axio name.
- Suits: Users who do many UPI and card payments and do not want to log them manually.
- Consider before choosing: The app is run by a lending company and also offers credit products. If you only want a tracker, you can ignore those offers. Review the SMS permission before you allow it.
ET Money
ET Money is mainly known for mutual fund investing, and also includes personal finance tools.
- Suits: Users who invest through the app and want one dashboard.
- Consider before choosing: If you only need a simple budget tool, an investment-focused app may feel heavy. Confirm which expense features are available in the current version.
Monefy
Monefy is a simple manual tracker. You tap a category and enter the amount, and the chart updates instantly.
- Suits: Privacy-focused users and people who like knowing every rupee they spend.
- Consider before choosing: If you often forget to log expenses, your records will have gaps.
SMS Permission: What to Check Before You Allow It
- Read the app's privacy policy. Look for what data is collected, where it is stored and whether it is shared.
- Check the developer name on the Play Store or App Store listing.
- Never share OTPs, UPI PINs or passwords with any app or person. A genuine expense tracker does not need them.
- You can remove the permission anytime from your phone settings if you change your mind.
How to Choose: A Simple 4-Step Method
- Decide your priority: Automation (SMS-based) or privacy (manual).
- Check permissions on the app store page before installing.
- Test for one week. Compare the app's records with your bank statement.
- Review monthly. Match the app's totals with your UPI app history to catch missed entries.
Practical Tips to Track UPI Spending Better
- Pay from one main bank account for daily UPI so tracking stays simple.
- Keep bank SMS alerts switched on.
- Add cash spends manually, because no SMS is generated for cash.
- Set one fixed day each week to correct wrong categories.
Disclaimer: This article is for general information only and is not financial advice. App features, pricing and policies may change. Please check official sources before using any app. ResourceDock may earn a commission from some links on this page.