UPI clocks 24.07 bn transactions worth ₹29.37 lakh crore in September as festive spending gathers pace

Unified Payments Interface (UPI) processed 24.07 billion transactions worth ₹29.37 lakh crore in September, with average daily transaction volumes crossing 800 million for the first time, according to data released by the National Payments Corporation of India (NPCI).

UPI transaction volume rose 23% year-on-year in September, while the value of transactions increased 18%. On an average, the platform processed around 802 million transactions a day, worth nearly ₹97,913 crore. Both average daily transaction volumes and values were at record levels.

The monthly figures, however, were lower than August, when UPI processed 24.51 billion transactions worth ₹29.82 lakh crore. September had 30 days compared with 31 in August, meaning the sequential decline does not necessarily indicate a slowdown in payment activity.

Meanwhile, the value of transactions processed through the Immediate Payment Service (IMPS) stood at ₹7.06 lakh crore in September, up 18% year-on-year. IMPS processed an average 11.80 million transactions a day, with average daily transaction value at ₹23,530 crore.

Higher-value transactions lift daily average

Reeju Datta, co-founder, Cashfree, said the lower monthly numbers were primarily a result of September having one fewer day. He highlighted the first-time crossing of the 800-million mark in average daily transactions and the record daily transaction value.

According to Datta, average daily UPI transaction value had remained around ₹96,000 crore between April and August even as transaction volumes increased. In September, the increase in relatively higher-value transactions pushed the daily value to nearly ₹98,000 crore.

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He attributed part of the momentum to the festive season, noting that Ganesh Chaturthi fell in mid-September and contributed to consumer spending. Major festive sales are expected to begin in October, while Diwali falls in November.

Akshay Mehrotra, MD & group CEO, Fibe, said: "India's festive season is shaping up to be a celebration of consumer confidence, and UPI monthly transactions of 24.07 billion worth ₹29.37 lakh crore show how firmly digital payments have taken root in everyday life. This momentum creates a great opportunity for fintech: connecting payments with timely, affordable credit for the people driving India's consumption story."

Anand Kumar Bajaj, founder, MD & CEO, PayNearby, said the numbers also reflected the expansion of digital payments beyond large cities, with smaller towns, rural communities and neighbourhood merchants increasingly participating in the UPI ecosystem.

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UPI MDR framework from October 15

The September data comes ahead of the implementation of the new UPI merchant discount rate (MDR) framework from October 15. Under the framework, MDR will apply to certain person-to-merchant (P2M) UPI transactions above ₹2,000, while transactions up to ₹2,000 will continue to attract zero MDR.

Government data indicates that transactions up to ₹2,000 account for more than 96% of UPI merchant transaction volume. Merchants with monthly UPI receipts of up to ₹1 lakh will also remain outside the MDR framework.

Experts said that they don't expect the new framework to materially affect UPI volumes or transaction value, citing the relatively lower cost of UPI compared with cards and the established consumer habit of using the payment system.

Mehrotra said: "As the ecosystem grows, a balanced and sustainable economic model for UPI, including a modest MDR, can support continued investment in secure, reliable and innovative payment infrastructure. That is good news for everyone in the chain. We are optimistic about the road ahead. With payments, credit and technology coming together, India's fintech sector is well placed to bring even more consumers into the formal financial system, and this festive season is a wonderful start."

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