UPI Transactions Dip 2.5% To 19.6 Bn In September

After touching a fresh all-time high in August, the number of UPI transactions declined 2.5% to 19.6 Bn in September from 20.1 Bn in August. 

On a YoY basis, the number of transactions surged 31% from 15 Bn transactions recorded in September 2024.

In terms of value, the number remained flat at INR 24.9 Lakh Cr last month compared to INR 24.85 Lakh Cr in August. However, this number grew 21% YoY from INR 20.6 Lakh Cr. 

The average daily transaction volume rose 1.4% to 654 Mn in September from 645 Mn in August. 

While the overall numbers for September are out, the National Payments Corporation of India (NPCI) generally releases the app-wise data for the previous month by the 10th of next month.

In August, PhonePe and Google Pay continued to dominate the market, processing 915 Cr and 706 Cr transactions, respectively. 

In order to further boost UPI, the NPCI is said to be working on EMI-on-UPI feature which will allow users to convert their UPI payments to EMI.

Meanwhile, amid widespread adoption of UPI, there are also calls from industry for levying MDR on these transactions to support innovation and infrastructure maintenance. Meanwhile, earlier in the day, RBI governor Sanjay Malhotra reiterated that there was no proposal before the central bank to make UPI payments chargeable.

However, earlier this year, he had raised concerns on over the sustainability of free UPI. The central bank’s governor then said that currently the UPI infrastructure operates without any charges for users and the government has been footing the bill by subsidising banks and other stakeholders who enable seamless, real-time payments.

He had also said that the sustainability of this system depends on changing the system of free digital transactions to include minimal charges. For any service to be truly sustainable, “its cost should be paid whether collectively or by the user”.