UPI Recorded Marginal Dip in September 2025: PhonePe and Google Pay Maintained Dominance

Unified Payments Interface (UPI) transactions in India remained robust in September 2025, processing 19.63 billion transactions worth ₹24.90 lakh crore, as per data released by the National Payments Corporation of India (NPCI).

While the transaction count dipped marginally by 1.9% from 20.01 billion in August, the total transaction value saw a modest uptick from ₹24.85 lakh crore. The decline in volume is attributed in part to September having fewer days than August.

Despite the lower number of days, average daily transactions in September stood at 654 million, up from 645 million in August. The daily transaction value also rose to ₹82,991 crore, compared to ₹80,177 crore the previous month.

Strong Year-on-Year Growth

On an annual basis, UPI continued to show impressive growth:

• Transaction volume rose by 31% year-on-year.
• Transaction value increased by 21%.

These figures compare with 34% volume growth and 21% value growth recorded in August.

PhonePe and Google Pay Dominate Market Share

As of August, PhonePe held the largest share of UPI transaction volume at 45.74%, followed by Google Pay with 35.30%. Notably, for the first time:

• PhonePe surpassed 9 billion monthly transactions.
• Google Pay crossed the 7 billion transaction mark.

In terms of merchant categories, grocery and supermarket outlets led UPI usage, followed closely by fast food chains and restaurants, highlighting the growing integration of digital payments into daily consumer behaviour.

UPI’s Global Expansion Gathers Pace

India’s UPI is also making its mark on the global stage:

• Recently launched in Qatar.
• Already live in Bhutan, Singapore, Sri Lanka, Mauritius, and Nepal.
• Agreements have been signed for future rollouts in France, the UAE, Namibia, Trinidad and Tobago, and Peru.

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