The September transaction count was lower than August’s 24.51 billion, while the total value was also below August’s ₹29.82 lakh crore. However, September had 30 days compared with 31 in August.
On a daily basis, UPI processed around 802 million transactions worth nearly ₹97,913 crore, both at record levels.
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The latest numbers indicate that the increase in UPI activity is not just being driven by a larger number of transactions, but also by higher average transaction values.
Industry experts attributed part of this momentum to the beginning of the festive season.
Reeju Datta, co-founder, Cashfree, said September’s lower monthly totals compared with August were primarily because the month had one fewer day. He noted that the average daily UPI transaction count crossed 800 million for the first time, while average daily transaction value also reached a record.
According to Datta, transaction values had remained around ₹96,000 crore a day between April and August even as volumes increased, as many of the additional transactions were small-ticket payments. In September, he said, the additional payments were of relatively higher value, pushing daily transaction value higher.
“Ganesh Chaturthi fell in mid-September this year, and people began spending on the festivities,” Datta said, adding that the main festive sales are still ahead, with major sales beginning in October and Diwali falling in November.
Deepak Chand Thakur, MD & CEO, NPST, said the September numbers reflect the scale of payment activity with India entering the festive season. He expects digital payment activity to increase further as consumers use UPI for shopping, travel, dining, gifting and entertainment across online and offline channels.Anand Kumar Bajaj, founder, MD & CEO, PayNearby, said the September figures also point to the increasing adoption of digital payments beyond large cities, with smaller towns, rural communities and neighbourhood merchants becoming part of the UPI ecosystem.
Bajaj expects festive spending on local retail, gifting, travel and household purchases to support further growth in UPI transactions in the coming months.
The September numbers also come ahead of the implementation of the new UPI merchant discount rate (MDR) framework from October 15. Datta said he does not expect the change to materially affect UPI volumes or value, citing the lower cost of UPI compared with cards and the established habit of using the payment system.
The new framework provides for an MDR on certain UPI person-to-merchant transactions above ₹2,000, while several categories and smaller transactions remain outside its scope.