UPI September transactions crossed 24 billion, despite a marginal month-on-month decline in overall volume. According to data released by the National Payments Corporation of India (NPCI), UPI recorded 24.07 billion transactions worth Rs 29.37 lakh crore during the month.

Key Highlights

• UPI processed 24.07 billion transactions worth Rs 29.37 lakh crore in September, despite a 1.8% monthly decline.
• Average daily transactions rose 1.4% as UPI recorded 23% year-on-year growth in transaction volume.

UPI Transaction volume has decreased by 1.8% from the record 24.51 billion transactions in August, while transaction value has dropped by 1.5% from Rs 29.82 lakh crore, data from the Union Pay International showed. The monthly volume of transactions, however, did not keep pace with the drop in monthly transactions, as average daily transactions and transaction value rose.

UPI September Transactions Report

The UPI September transactions Report shows that digital payment activity continued to grow as the volume stayed above the 24-billion mark for the second month in a row. The reduction was partly due to the number of days experienced, with August having 31 days and September 30.

During the month of September, the average number of transactions on UPI was 802 million, a 1.4% increase from 791 million in the previous month of August. The average daily transactions value also rose to Rs 97,913 crore from Rs 96,205 crore in the previous month.

Total transactions rose by 23% and value of transactions rose by 18% year-on-year in September.

UPI Transaction Volume Continues to Grow

In May 2026, UPI hit the milestone of crossing 23-billion transactions per month for the first time, with a total of 23.2 billion transactions valued at Rs 29.90 lakh crore. Transaction volume then jumped to a record 24.51 billion in August, up from 23.66 billion in July.

September’s 24.07 billion transactions indicate that the payment system maintained its high transaction levels despite the month-on-month decline. The increase in average daily transactions also provides a different perspective on activity, accounting for September’s shorter calendar.

Also Read: UPI Transaction Value Hits Rs 314 Lakh Crore in FY26: Grant Thornton

PhonePe Leads UPI Market Share in August

PhonePe held the largest share of UPI transaction volume in August, accounting for 45.64% of transactions. Google Pay followed with a 32.26% share, while Paytm held 8.03%. Together, the three platforms accounted for 85.93% of total UPI transaction volume.

In terms of transaction value, PhonePe led with a 47.82% share, followed by Google Pay at 33.78% and Paytm at 6.87%. NPCI has not yet released the app-wise transaction breakdown for September.

New UPI MDR Framework to Take Effect on October 15

A new UPI Merchant Discount Rate (MDR) framework is scheduled to take effect from October 15 for specified person-to-merchant payments above Rs 2,000. The framework provides for an MDR of 0.4%, capped at Rs 300 for transactions of Rs 75,000 and above.

UPI transactions of up to Rs 2,000 and person-to-person payments will remain outside the levy.

The Supreme Court has declined to stay the rollout while issuing notices to the Centre, the Reserve Bank of India and NPCI on a petition challenging the framework. The respondents have been asked to submit their responses within four weeks.

The September data shows that UPI maintained strong daily transaction activity despite a decline in monthly totals. Meanwhile, the upcoming MDR framework and the legal challenge surrounding it add another development to India’s digital payments landscape.