UPI sees record daily value in September as transaction volumes dip

UPI recorded 24.07 billion transactions worth Rs 29.37 lakh crore in September, with volumes down 1.8% month-on-month even as daily transactions touched a new all-time high. The post UPI in September: Transactions decline to 24.07 billion, average transaction size falls to Rs 1,012 appeared first on MEDIANAMA.

New Delhi: The Unified Payments Interface (UPI) transaction volumes went up 23 per cent (year-on-year) to 24.07 billion in the month of September, while UPI transaction value surged 18 per cent to Rs 29.37 lakh crore last month, according to data released by the National Payments Corporation of India (NPCI) on Thursday. Also Watch: On an average basis, UPI processed around 802 million transactions daily in September, with average daily transaction value standing at about Rs 97,913 crore.In August, the UPI transaction volumes went up 22 per cent (year-on-year) to 24.51 billion, while UPI transaction value rose 20 per cent to Rs 29.82 lakh crore.Moreover, the IMPS instant fund transfer amount stood at Rs 7.06 lakh crore, up 18 per cent year-on-year. Average daily IMPS transaction counts were 11.80 million, with Rs 23,530 crore average daily transaction amount, the NPCI data showed.Apple Pay Launched In India With Axis Bank Credit Cards: Here's How To Use It Meanwhile, leading traders’ bodies have withdrawn their call to observe October 2 as “No UPI Day” following a meeting with Finance Minister Nirmala Sitharaman in the national capital. A delegation of around 20 trade representatives from various states met the finance minister to express concerns over the proposed 0.4 per cent fee on merchant UPI transactions above Rs 2,000.The traders said the move could increase the burden on small and medium businesses and affect digital payment adoption among merchants. The delegation was led by Praveen Khandelwal, Member of Parliament from Chandni Chowk and secretary general of the Confederation of All India Traders (CAIT).WhatsApp Introduces Parental Controls For Teens, Adds Privacy, Group & Meta AI Settings MDR applies only to P2M transactions above Rs 2,000. Transactions up to Rs 2,000 continue to have zero MDR and therefore zero GST impact.Government data indicates that transactions of up to Rs 2,000 constitute more than 96 per cent of UPI merchant transaction volume. As a result, the overwhelming majority of UPI payments will not attract MDR and hence no GST on MDR.Merchants with monthly UPI receipts of up to Rs 1 lakh are not liable to pay MDR and therefore do not even have the issue of GST on MDR. The new UPI framework has no impact on any person-to-person transactions. UPI will continue to remain completely free for all person-to-person transactions, irrespective of the amount transferred.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

Monthly transactions on the Unified Payments Interface (UPI) declined 1.8% in September to 24.07 billion from a record 24.51 billion in August, according to data released by the National Payments Corporation of India (NPCI).Despite the fall in transaction volume, the value of UPI payments increased 1.5% to ₹29.37 trillion during September. The figures come ahead of the October 15 introduction of a merchant discount rate (MDR) on select UPI transactions.UPI Limit Scam Costs Pensioner Couple Nearly ₹6 Lakh In Indore Festival spending lifts daily UPI paymentsUPI recorded 802 million transactions a day in September, with a daily value of ₹97,913 crore. Both figures were monthly records, while daily transaction volumes crossed the 800-million mark for the first time.Daily UPI payment value had remained around ₹96,000 crore from April to August even as transaction volumes increased, as many of the additional payments were relatively small. In September, higher-value festival spending pushed the daily value above that level.UPI transactions were 23% higher in volume and 18% higher in value than a year earlier. Industry executives expect digital payment activity to gain further momentum during the festival season as consumers increasingly use UPI for online and offline purchases. MDR rollout set for October 15The September data comes amid concerns among industry groups over the introduction of MDR, which will end nearly six years of zero-charge UPI transactions for certain payments.From October 15, peer-to-peer transactions will remain free, while specified person-to-merchant transactions above ₹2,000 will attract an MDR of 0.40%, capped at ₹300. Payments received by small vendors under the designated P2PM category will also remain free.Meanwhile, IMPS transactions declined more than 1.7% month-on-month to 354 million, although their value increased slightly to ₹7.06 trillion. Aadhaar Enabled Payment System transactions fell 8% to 95.78 million, while their value declined 9% to ₹23,734 crore.

In September, India's digital payments landscape showed notable resilience, highlighted by a juxtaposition of transaction volumes and values. The monthly UPI transaction count declined to 2,407 crore, yet the average daily value surged to Rs 97,913 crore. Similarly, while IMPS volumes dipped to 35.4 crore, daily values rose. Notably, UPI's daily value saw an impressive increase of 18% year-over-year, reflecting shifting consumer trends in payment preferences within the nation.