UPI Performance in September

UPI performance in September showcased a consistent trend in India’s Unified Payments Interface ecosystem, with a total of 19,633.43 million transactions processed within the month. Although transaction volumes experienced a slight dip compared to August, the aggregate payment value increased marginally to Rs 24,89,736.54 crore.

Market Leaders in UPI Transactions

PhonePe maintained its status as the market leader, representing roughly 45.6% of the overall transaction volume and 48.4% of the total transaction value. Google Pay followed closely, capturing a 34.8% share in terms of volume and 35.1% by value. Paytm occupied the third position, holding 7.1% of the volume and 5.8% value share.

Comparison with August Figures

In contrast to August figures, PhonePe’s market volume share saw a minor decrease from 45.74% to 45.6%, with its value share remaining steady at 48.4%. Google Pay experienced a slight drop in both volume and value shares, decreasing from 35.30% and 35.55%, respectively, in August to 34.8% and 35.1% in September. Paytm’s market share showed minimal changes, with a slight rise from 7.0% in August to 7.1% in volume.

The three major players achieved peak volumes of 9 billion, 7 billion, and 1.4 billion in August, respectively.

Emerging Players in the UPI Sector

New entrants like Navi and super.money have made strides in the UPI landscape, although their market shares remain modest. Navi accounted for 2.7% of the transaction volume and just over 1% of the value, while super.money captured 1.3% of the volume and 0.4% of the value.

The remaining transaction volume and value were contributed by Axis Bank Apps, CRED, BHIM, FamApp by Trio, and Amazon Pay, with CRED standing out with a 2.2% share by value despite a lower transaction volume.

Trends in UPI Merchant Categories

In September, grocery stores and supermarkets led the UPI merchant categories, recording 3,126.25 million transactions valued at Rs 66,409 crore. Other notable sectors such as fast food outlets, restaurants, fuel stations, telecom, and utility payments also showed significant activity, highlighting ongoing consumer dependency on UPI for essential and day-to-day purchases.

Impact of Government Regulations

Notably, transactions related to digital goods, including gaming, dropped to zero in September. This decline can be linked to the Indian government’s prohibition on real-money gaming platforms implemented in mid-August. Previously, in August, this segment had already witnessed a 26% reduction in transaction value, falling to Rs 7,441 crore.