Unified Payment Interface (UPI) transaction volume and value posted 1.5% drop in September ahead of the implementation of merchant discount rate (MDR) implementation on October 15, according to the National Payments Corporation of India (NPCI) data.
On a month-on-month basis, number of UPI transactions fell from 24.51 billion in August 2026 to 24.07 billion in September and transaction value fell from Rs 29.82 lakh crore in August to Rs 29.37 lakh crore in Septembe.
In September, Indians made 802 million daily UPI payments worth Rs 97,913 crore — a record for daily volume and value. It was also the first-time daily UPI payments crossed 800 million. Daily transaction in August stood at Rs 96,205 crore. Transaction volume fell 1.8% from 24.51 billion in August, while the value of transactions also fell marginally month-on-month, the NPCI data showed.
On a year-on-year basis, transaction volumes rose 23%, while value increased 18%. Monthly UPI transaction volumes have remained above 20 billion since last October, supported by wider merchant acceptance across urban and rural markets, rising smartphone penetration and growing consumer adoption.
The data also comes against the backdrop of recent changes to the merchant discount rate (MDR) framework, which have altered the economics of UPI payments for merchants and payment service providers.
"UPI's September totals are slightly lower than August's only because September has one less day in the month. On an average day, Indians made 802 million UPI payments worth Rs 97,913 crore, both the highest ever. This is also the first time daily UPI payments have crossed 800 million,” Reeju Datta, co-founder of Cashfree.
Datta added that while the recent MDR on UPI would come into effect starting October 15, we don’t see it impacting UPI volumes or value much. “UPI MDR is still cheaper than those for cards and UPI has become a habit for many people due to convenience which will carry forward into the festive season as well.” Deepak Chand Thakur, MD & CEO, NPST.
“September’s UPI numbers are less about another monthly milestone and more about the scale of payment behaviour India is entering the festive season with. With UPI already processing over 800 million transactions a day, the coming months are likely to see a sharper convergence of digital payments and consumption as festive shopping, travel, dining, gifting and entertainment drive higher transaction frequency across online and offline channels.”
