Increase the payload size limit of API Gateway

No, it can not be increased, API Gateway quotas for configuring and running a REST API.

You can use a different architecture to get around this limitation but still use API Gateway. See: Patterns for building an API to upload files to Amazon S3

According to this Payload size is 10 MB and can not be increased. https://docs.aws.amazon.com/apigateway/latest/developerguide/limits.html

Instead of posting the data directly to the API endpoint, you can generate a PreSigned S3 URL and upload using it. If any subsequent processing of the data is needed you will use S3 notifications and Lambda after the upload is completed.

Hope this helps.

API Gateway has a hard limit of 10MB for the payload size. It can't be increased.

The recommendation in these cases is to generate an S3 pre-signed URL and use it to upload the file to S3 and process it from there.