India’s Unified Payments Interface continues its robust expansion in September, with record daily transaction volumes set despite a slight monthly decline ahead of the new merchant discount rate implementation, signalling resilience and ongoing market evolution.
India’s Unified Payments Interface ended September with another towering month, even if the pace eased from August’s record. According to data released by the National Payments Corporation of India, UPI handled 24.07 billion transactions worth Rs 29.37 lakh crore in September 2026. That was a modest fall from the previous month, but it still represented strong growth compared with a year earlier, underscoring how firmly digital payments remain embedded in everyday spending.
The month-on-month retreat was small: volume fell 1.8% and value slipped 1.5%, a move analysts said was largely explained by the calendar, since September has 30 days while August has 31. On a daily basis, UPI actually set fresh highs. The system averaged 802 million transactions a day in September, crossing the 800 million threshold for the first time, while daily value reached a record Rs 97,913 crore. LiveMint and Business Standard both reported that the trend suggested resilience rather than a genuine slowdown in use.
Compared with September 2025, the picture was still one of robust expansion. Transaction volume rose 23% year on year, while value increased by 18%, according to NPCI data quoted by Business Standard and LiveMint. The annual growth rates were broadly in line with August’s pace, suggesting that UPI is still expanding, though no longer at the breakneck speed seen in earlier phases of adoption. The steadier trajectory is also visible in the daily figures, which point to more frequent use and a higher-value mix of payments.
The September numbers come just before a change that has drawn scrutiny from merchants: the introduction of a merchant discount rate, or MDR, on certain person-to-merchant UPI payments from 15 October. Under the new framework, a 0.4% fee will apply to qualifying transactions above Rs 2,000, capped at Rs 300. Government data cited in the lead report indicates that transactions up to Rs 2,000 make up more than 96% of UPI merchant volume, which should limit the immediate effect on most users. Even so, traders have voiced concern that the levy could alter behaviour, especially if festive-season spending shows signs of strain.
NPCI’s latest public app-level breakdown remains August data, when PhonePe retained the top position with a 45.64% volume share, followed by Google Pay at 32.26% and Paytm at 8.03%. Together, those three apps accounted for 85.93% of transaction volume, highlighting how concentrated the market remains at the top. UPI’s overseas push is also continuing. NPCI International Payments Ltd has agreed to extend merchant payments into Uzbekistan through the country’s QR code network, marking a further step in the platform’s cross-border expansion.
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