UPI Transactions See Marginal Rise To 15.04 Bn In September

The Unified Payments Interface (UPI) transactions saw a marginal rise of 0.53% month-on-month (MoM) to 15.04 Bn in September from 14.96 Bn in the previous month.

On a year-on-year basis, the transaction count surged 42%.

As per data released by the National Payments Corporation of India, the total UPI transactions processed in September amounted to INR 20.64 Lakh Cr as against INR 20.61 Lakh Cr in the preceding month, a 0.14% jump.

On a year-on-year basis, UPI transactions volume surged 31%.

On the UPI market share front, fintech giants PhonePe and Google Pay continue to dominate the UPI ecosystem with a 48.4% and 37.3% market share, respectively, as of August. 

The development coincides with NPCI considering raising the market share cap for Unified Payments Interface (UPI) apps from the proposed 30%. 

To limit the dominance of major digital payments players like Google Pay and PhonePe, the NPCI first proposed a 30% market cap for third-party app providers in November 2020, with the deadline extended from December 2022 to December 2024.

However, in May, it was reported that the NPCI was planning to extend the year-end deadline by up to two years to cap the market share at 30%. 

Before that in February, a parliamentary panel also flagged the dominance of global fintech apps in the Indian digital payments ecosystem.

Despite this, the Indian government is pitching the UPI to the world. In July, PM Modi said that India plans to integrate UPI with Malaysia’s national payments network PayNet. In the same month, NPCI rolled out the ‘UPI One World’ wallet for all foreign tourists in partnership with IDFC First Bank and Transcorp International Limited.

Not to mention, countries in the likes of Sri Lanka, Mauritius, Bhutan, Nepal, the UAE and Canada have already deployed India’s UPI payment model to some extent.

Apart from UPI, Additionally, the NPCI has also launched several new features to fuel the adoption of digital payments such as UPI Lite, which supports low-value transactions; UPI Lite X, which supports offline transactions; and Hello! UPI, which lets users make payments with their voice.

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