UPI Transaction Volume Dips 1.8% MoM to 24.07 Billion in September 2026
UPI processed 24.07 billion transactions worth Rs 29.37 lakh crore in September 2026, per NPCI data, a 1.8% MoM dip in volume but still up 23% year-on-year.
India's Unified Payments Interface (UPI) processed 24.07 billion transactions worth Rs 29.37 lakh crore in September 2026, according to data released by the National Payments Corporation of India (NPCI). This was a dip from August's record monthly volume, though UPI continued to register strong year-on-year growth.
August had marked UPI's second consecutive month of record transaction volume, at 24.51 billion. September's figures came in lower, but largely because the month had 30 days against August's 31, rather than any pullback in underlying usage.
Volume Dips 1.8% MoM, But Daily Average Hits a Record
Transaction volume fell 1.8% month-on-month in September, while transaction value declined 1.5% from August. On a daily basis, however, UPI processed an average of 802 million transactions, crossing the 800-million mark for the first time, up from 791 million in August.
Average daily transaction value also rose to a record Rs 97,913 crore in September, from Rs 96,205 crore in August, as the mix shifted towards relatively higher-value transactions.
Month-on-Month and Year-on-Year Growth
| Metric | August 2026 | September 2026 | MoM Change | September 2025 | YoY Change |
|---|---|---|---|---|---|
| Transaction volume | 24.51 billion | 24.07 billion | -1.8% | 19.63 billion | +23% |
| Transaction value | Rs 29.82 lakh crore | Rs 29.37 lakh crore | -1.5% | Rs 24.90 lakh crore | +18% |
| Avg. daily volume | 791 million | 802 million | +1.4% | 654 million | +22.5% |
| Avg. daily value | Rs 96,205 crore | Rs 97,913 crore | +1.8% | Rs 82,991 crore | +18% |
The gap between a falling monthly volume and a rising daily average is explained mostly by the shorter month. On a like-for-like daily basis, both volume and value actually grew, and the daily value hit a fresh high, pointing to a shift towards somewhat higher-value transactions rather than any slowdown in usage.
PhonePe Leads, Google Pay Second in August App-wise Data
NPCI has not yet released app-wise transaction data for September 2026. The most recent available breakdown is for August 2026, when PhonePe retained its lead in the UPI ecosystem.
| App | Volume Share (August 2026) | Value Share (August 2026) |
|---|---|---|
| PhonePe | 45.64% | 47.82% |
| Google Pay | 32.26% | 33.78% |
| Paytm | 8.03% | 6.87% |
Together, the three apps accounted for 85.93% of UPI transaction volume in August.
UPI's International Expansion
In September, NPCI International Payments Ltd (NIPL) signed an agreement with Uzbekistan's National Interbank Processing Centre (NIPC), extending UPI merchant payments to Uzbekistan via the country's UZQR QR code. The deal, signed on 30 August, marks UPI's first entry into Central Asia; NIPL and India's finance ministry have not yet announced a rollout date for the service. As of the earlier NPCI release, UPI merchant payments were live in 10 international markets: Bhutan, Singapore, the United Arab Emirates, France, Mauritius, Sri Lanka, Nepal, Qatar, Cambodia and the Maldives, with Greece connected for person-to-person transfers. News reports on the Uzbekistan deal vary on the exact market count, so this is flagged as unconfirmed pending NPCI's own updated figure.
What the Numbers Suggest
September's dip in monthly volume is best read as a calendar effect rather than a change in underlying trend: on a daily basis, both transaction counts and value hit fresh highs. Year-on-year growth held at 23% in volume and 18% in value, broadly similar to August's rates, suggesting UPI's growth trajectory has settled into a steady, if moderating, pace after several years of faster expansion.
The month's numbers arrive just ahead of the new UPI Merchant Discount Rate (MDR) framework, which takes effect from 15 October and will apply a 0.4% fee, capped at Rs 300, on person-to-merchant transactions above Rs 2,000. Government data shows transactions up to Rs 2,000 account for more than 96% of UPI merchant volume, and merchants with monthly UPI receipts up to Rs 1 lakh stay outside the levy, so the immediate impact on volumes is likely to be limited. With festive spending building through October and November, the next two months' data will offer a clearer read on how merchants and consumers respond to the new charge.
