The Unified Payments Interface (UPI) processed 24.07 billion transactions worth Rs 29.37 lakh crore in September 2026, according to monthly data from the National Payments Corporation of India (NPCI) released on October 1, 2026. Volume was 1.8% lower than August's record, but 23% higher than in September 2025.
The figures come two weeks before UPI's first merchant discount rate (MDR) takes effect on October 15, 2026. Under it, merchants will pay a fee on larger UPI payments, while payments by customers stay free.
September 2026 in numbers
| September 2026 | August 2026 | |
|---|---|---|
| Transactions | 24.07 billion | 24.51 billion (record) |
| Value | Rs 29.37 lakh crore | Rs 29.82 lakh crore |
| Average transactions a day | 802 million | 791 million |
| Average value a day | Rs 97,913 crore | Rs 96,205 crore |
The monthly totals fell because September has one day fewer than August. On a per-day basis, both the number and the value of payments went up. Compared with September 2025, volume rose 23% and value 18%.
PhonePe and Google Pay continue to handle most UPI payments. In August, PhonePe's share was about 45.6% of volume and Google Pay's about 32.3%, with Paytm at about 8%.
The merchant charge from October 15
NPCI announced the MDR framework in a circular dated September 15, 2026. The main rules:
- Payments up to Rs 2,000 to a merchant: no charge.
- Person-to-person transfers (sending money to family or friends): no charge, at any amount.
- Merchant payments above Rs 2,000: the merchant pays 0.4% of the amount, capped at Rs 300 a transaction. The cap is reached at Rs 75,000.
- Railways, telecom, insurance and fuel: a flat Rs 5 a transaction on payments above Rs 2,000.
- Capital market payments such as mutual funds and stockbrokers: 0.02%, also capped at Rs 300.
Some examples at the general 0.4% rate:
| Payment to a shop | Fee paid by the merchant |
|---|---|
| Rs 1,500 | Nil |
| Rs 3,000 | Rs 12 |
| Rs 10,000 | Rs 40 |
| Rs 50,000 | Rs 200 |
| Rs 1,00,000 | Rs 300 (cap) |
What it means for you
- As a customer, you are not charged for paying by UPI, whatever the amount. Paying a friend, splitting a bill or paying a small shop works the same as before.
- As a merchant, check whether your bank or payment aggregator has told you how the fee will be deducted from your settlements from October 15. Most payments at small shops are below Rs 2,000 and stay free.
- Big-ticket buys such as electronics, furniture or school fees paid by UPI to a merchant will now carry a fee for the seller, though not for the buyer.
For more on everyday money matters, see our reports on small savings interest rates for October-December 2026 and the new FEMA export-import rules in force from October 1.
What happens next
The MDR applies to payments made from October 15, 2026. NPCI's data for October, due in early November, will be the first to show whether the charge changes how merchants accept UPI.
