UPI processes ₹1L crore in daily transactions for 1st time
What's the story
The Unified Payments Interface (UPI) has hit a new milestone, processing an average of over ₹1 lakh crore in transactions per day for the first time in October. The data from the National Payments Corporation of India (NPCI) shows that UPI handled 25.47 billion transactions worth ₹31.53 lakh crore throughout the month. This translates to an average daily transaction count of 822 million and a corresponding value of ₹1.01 lakh crore per day.
Month-on-month comparison
Growth figures of UPI transactions in October
October's transaction volume saw a 5.8% month-on-month growth from September, when UPI processed 24.07 billion transactions worth ₹29.37 lakh crore.
The transaction value also saw a 7.4% increase from last month's figures.
On a year-on-year basis, UPI's transaction volume grew by an impressive 23%, while the transaction value increased by 16% in October compared to the same period last year.
Market dominance
PhonePe, Google Pay, and Paytm continue to dominate market
In September, PhonePe led the UPI market with a 45.6% share of transaction volume, followed by Google Pay at 32.2% and Paytm at 8.1%.
Together, these three apps accounted for nearly 86% of transactions through listed UPI apps.
Paytm founder Vijay Shekhar Sharma has also announced plans to capture one-third of the UPI consumer payments market during their Q2 FY27 earnings call.
Policy update
NPCI deferred MDR charges on select UPI transactions
Last month, NPCI deferred the implementation of Merchant Discount Rate (MDR) charges on select UPI transactions until after Diwali.
The decision was taken by the UPI and Services Steering Committee on October 13, considering the festive season.
The MDR framework provides for a 0.4% charge on certain person-to-merchant transactions above ₹2,000 with a cap of ₹300 for transactions worth ₹75,000 and above.