UPI Transactions Rise 4% Month-on-Month to 23.7 Billion in July

The volume of transactions processed through India's Unified Payments Interface (UPI) saw a 4% month-on-month increase in July, reaching 23.66 billion transactions from 22.72 billion in June, according to data released by the National Payments Corporation of India (NPCI). The total value of these transactions also grew by 3% to INR 29.88 lakh crore in July, up from INR 28.92 lakh crore in the previous month. On a year-on-year basis, transaction volume grew by 22%, while the transaction value increased by 19% in July. The average daily transaction count saw a slight rise to 763 million in July, from 757 million in June. However, the average daily transaction value marginally decreased to INR 96,383 crore from INR 96,405 crore recorded in June. This growth occurs as the Indian government reportedly reconsiders the introduction of a merchant discount rate (MDR) on UPI transactions. A proposed structure could impose a 0.05% to 0.07% MDR on UPI transactions exceeding INR 2,000 for businesses with an annual turnover of INR 1 crore to INR 1.5 crore or more. This would exempt the majority of small and micro merchants. The Payments Council of India (PCI) has been advocating for a 0.3% MDR on UPI transactions at larger merchants since 2025. Meanwhile, platforms like PhonePe and Google Pay continue to lead the UPI ecosystem, though smaller players such as Navi and super.money are steadily gaining market share. WhatsApp also surpassed CRED in both market share and transaction volume in June.