At the same time, transaction value rose nearly 42% y-o-y to Rs 15.8 trillion in September, marginally lower than Rs 15.76 trillion in August.
Transactions on the unified payments interface (UPI) platform rose 56% year-on-year(y-o-y) to 10.6 billion in September, latest data from the National Payments Corporation of India(NPCI) showed.
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Despite surpassing the 10 billion mark for the second straight month, the transaction volume flat in comparison to August. This is largely because of the fact that September has one lesser day than August. Transaction volume had risen nearly 61% y-o-y in August. On an average, 358.1 million transactions happen per day.
At the same time, transaction value rose nearly 42% y-o-y to Rs 15.8 trillion in September, marginally lower than Rs 15.76 trillion in August.
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As of August, PhonePe did nearly 5 billion transactions, controlling 47% of the market share in terms of volume, data from the NPCI showed. GooglePay clocked 3.8 billion transactions, and Paytm clocked 1.5 billion transactions respectively.
Similarly, PhonePe did transactions worth Rs 7.8 trillion or 49% of the market share in terms of value. GooglePay did transactions worth Rs 5.4 trillion, and Paytm clocked transactions worth Rs 1.8 trillion.
Experts note that a key driver of UPI so far has been the near-ubiquitous acceptance of UPI for both personal and payment transactions from issuers and buyers as well as a high acceptance by merchants.
The growth in UPI has also been aided by greater penetration of UPI in rural India.
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Some of this growth in UPI transactions is aided by peer-to-merchants transactions, which can be attributed to zero transaction fees imposed on merchants. Beyond low fees, merchants are also looking for security, timely payments among other things and UPI delivers here, Worldline India said in a recent report.
“UPI is going to become even more entrenched with the population and growth will continue at this rapid pace and the P2M percentage, at current trends, will likely reach 75% of all UPI transactions by 2025,” the report said.
