Archive · 3 Oct 2026
UPI Growth Reaches 145 Billion as Merchant Fees Approach
UPI is a system people and shops use to send and receive money.
In the first half of the financial year, it handled about 145 billion payments.
That was 27% more payments than in the same period a year earlier.
The total amount of money paid also grew.
In September, the monthly totals were slightly lower than in August, but the average number of payments each day was higher.
From October 15, some shops will pay a fee when customers make UPI payments above Rs 2,000.
People sending money to other people will not pay this fee.
Some small shops are exempt, and UPI is accepted in 11 countries.
UPI processed about 145 billion transactions in April–September, up 27% from 114 billion a year earlier.
The value of transactions rose 20% to Rs 177 lakh crore, compared with Rs 148 lakh crore in the same period last year.
In September, monthly transaction volume fell 1.7% and value fell 1.5% from August, while the daily average rose to 802 million from 791 million.
From October 15, a 0.4% MDR will apply to eligible merchant UPI payments above Rs 2,000; person-to-person payments remain free.
Small merchants collecting up to Rs 1 lakh monthly via UPI QR codes are exempt, and UPI is accepted in 11 countries.
- Who
- The National Payments Corporation of India (NPCI) reported the UPI figures; the new MDR applies to eligible merchant payments.
- What
- UPI transaction volume and value grew year over year, ahead of new merchant discount rate rules.
- When
- The growth figures cover April–September; the new MDR takes effect October 15.
- Where
- India; UPI is also accepted in 11 countries.
- Why
- The MDR is intended to provide a revenue framework for the digital-payments ecosystem.
- First-half transaction volume
- About 145 billion, up 27% from 114 billion in the comparable period a year earlier.
- First-half transaction value
- Rs 177 lakh crore, up 20% from Rs 148 lakh crore.
- September activity
- 24.07 billion transactions and Rs 29.37 lakh crore in value, down 1.7% and 1.5% respectively from August.
- Daily transaction average
- 802 million in September, compared with 791 million in August.
- Standard MDR
- 0.4% on eligible merchant UPI transactions above Rs 2,000, effective October 15.
- Exemptions and cap
- Person-to-person payments remain free; merchants collecting up to Rs 1 lakh monthly through UPI QR codes are exempt. The MDR is capped at Rs 300 for transactions of Rs 75,000 or more.
- Other stated rates
- Eligible essential-service payments above Rs 2,000 carry a flat Rs 5 fee; capital-market payments have a 0.02% MDR, capped at Rs 300.
- International acceptance
- UPI is accepted in 11 countries, with Uzbekistan the latest addition.
