Unified Payments Interface (UPI) transactions in India increased by 4% month-on-month to reach 23.66 billion in July, up from 22.72 billion in June, according to data from the National Payments Corporation of India (NPCI). The total transaction value also grew by 3% to ₹29.88 lakh crore from ₹28.92 lakh crore in June, reflecting continued growth in digital payments.
The average daily transaction count rose slightly to 763 million in July from 757 million in June, while the average daily transaction value was ₹96,383 crore, marginally lower than the ₹96,405 crore recorded in the previous month. On a yearly basis, transaction volume increased by 22%, and transaction value rose 19%. The data comes amid government considerations to introduce a merchant discount rate (MDR) on UPI transactions for businesses with annual turnover between ₹1 crore and ₹1.5 crore, applicable only on transactions above ₹2,000.
The Payments Council of India has been advocating for a 0.3% MDR on UPI transactions at large merchants since 2025. Despite this, small and micro businesses, which make up about 90% of merchants accepting UPI, would be exempt from the proposed MDR. PhonePe and Google Pay continue to dominate the UPI ecosystem, while smaller players such as Navi, super.money, and WhatsApp are gradually increasing their market share, signaling a competitive landscape in digital payments.
The NPCI is expected to release detailed app-wise UPI transaction data for July later this month, which will provide further insights into market dynamics and the performance of emerging players in the UPI ecosystem.