Unified Payments Interface (UPI) crossed a major milestone in September, with average daily transactions exceeding 800 million for the first time. 

UPI processed an average 802.3 million transactions a day during the month, up from 790.6 million in August and 654.3 million in September 2025, highlighting the continued expansion of digital payments in India.

UPI processed 24.07 billion transactions worth Rs 29.37 lakh crore in September. Transaction volumes increased 22.6% year-on-year, while transaction value rose 18% from Rs 24.90 lakh crore in September last year. The average daily value also reached a record Rs 97,900 crore, compared with Rs 96,194 crore in August and Rs 83,000 crore a year earlier.

The monthly numbers were slightly lower than August, when UPI handled 24.51 billion transactions worth Rs 29.82 lakh crore. However, September had 30 days compared with 31 in August, meaning the decline does not indicate a slowdown when daily activity is considered. Average daily transaction volumes actually increased during the month.

The growth also shows how UPI has become increasingly important for everyday, smaller-value payments. The average transaction size stood at around Rs 1,220 in September, slightly above August but nearly 4% below the year-ago level of Rs 1,268. This suggests that rising transaction volumes are being supported by more frequent low-value payments.

The strong usage comes ahead of changes to UPI merchant payments. From October 15, a 0.4% merchant discount rate will apply to specified person-to-merchant transactions above Rs 2,000. The government has clarified that person-to-person payments will remain free, while around 96% of merchant transactions will also remain unaffected.

Despite the upcoming changes, September’s record daily usage indicates that UPI activity has remained resilient. The continued rise in volumes, alongside record daily transaction value, reinforces UPI’s growing role in India’s digital payments ecosystem.

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