UPI Transactions Fell 2% Month-on-Month in September
India's UPI payment service saw a 1.8% month-on-month decrease in transaction volume in September. The value of transactions also declined by 1.5%.
India's Unified Payments Interface (UPI) recorded a marginal dip in transaction volumes in September, falling 1.8% from August to 24.07 billion transactions. The total value of these transactions also decreased by 1.5% to INR 29.37 lakh crore.
Despite the monthly decline, year-on-year figures showed robust growth, with transaction volume up 23% and value increasing by 18%. The average daily transaction volume rose to 802 million, and the average daily transaction value increased to INR 97,913 crore.
The figures emerged as debate continues around a new Merchant Discount Rate (MDR) framework for UPI, set to be implemented from October 15. This framework introduces a 0.4% charge on person-to-merchant transactions exceeding INR 2,000.
While merchant groups have voiced concerns that the new charges could discourage UPI usage, particularly during peak shopping seasons, payment ecosystem players have welcomed the move. They anticipate the MDR will create new revenue streams and provide clarity on business model sustainability.