UPI transaction volume falls 1.8% in September after August record
In August, PhonePe accounted for a 45.64% share of UPI transaction volume, followed by Google Pay at 32.26% and Paytm at 8.03%.
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Transaction volume fell 1.8% from 24.51 billion transactions in August, while transaction value declined 1.5% from Rs 29.82 lakh crore.
On a daily average, however, UPI activity increased. The platform handled around 802 million transactions per day in September, up 1.4% from 791 million in August. Average daily transaction value also rose to Rs 97,913 crore from Rs 96,205 crore.
On a year-on-year basis, transaction volume increased 23%, while transaction value grew 18% during the month.
UPI first crossed the 23 billion monthly transaction mark in May 2026, processing 23.2 billion transactions worth Rs 29.90 lakh crore. Volume then reached 23.66 billion in July before hitting a record 24.51 billion in August.
In August, PhonePe accounted for a 45.64% share of UPI transaction volume, followed by Google Pay at 32.26% and Paytm at 8.03%. Together, the three platforms handled 85.93% of the total volume. NPCI has not yet released the app-level data for September.
By transaction value, PhonePe held a 47.82% share in August, followed by Google Pay with 33.78% and Paytm with 6.87%.
Separately, the revised UPI Merchant Discount Rate (MDR) framework is set to come into effect from October 15 for specified person-to-merchant transactions above Rs 2,000. The framework includes an MDR of 0.4%, capped at Rs 300 for transactions of Rs 75,000 or more. Payments up to Rs 2,000 and person-to-person transactions will not be covered.
The Supreme Court on Friday declined to halt the implementation of the new Merchant Discount Rate (MDR) framework for certain UPI merchant payments scheduled to take effect on October 15. The court issued notices to the Centre, RBI and NPCI, seeking their replies within four weeks on the legal basis and nature of the MDR levy.