UPI transactions rise 27% to 145 billion in H1 FY27 ahead of new MDR
UPI has recorded significant transaction growth, processing 145 billion transactions in the first half of the financial year. The value of these transactions increased to Rs 177 lakh crore, reflecting a notable rise. A new merchant discount rate will be introduced on October 15, applying to high-value UPI transactions. Most everyday merchant transactions will remain free, with certain services…
UPI transaction volumes surged 27% to 145 billion in the first half of the current fiscal year, according to National Payments Corporation of India (NPCI) data. The value of these transactions grew at a slower pace of 20% to Rs 177 lakh crore, from Rs 148 lakh crore in the corresponding period last year. However, September saw a slight decline in both the number of transactions and total value.
In September, transaction volume decreased by 1.7% to 24.07 billion, while the value of transactions fell by 1.5% to Rs 29.37 lakh crore. This decline should be considered alongside the difference in the number of days in the two months, with August having 31 days and September 30. Despite this, September still had an average of 802 million daily transactions, compared to 791 million in August.
A new merchant discount rate (MDR) will commence on October 15, charging merchants 0.4% on UPI transactions above Rs 2,000, with the exception of person-to-person payments and certain essential services. The new fee structure aims to create a sustainable revenue model for the digital payments ecosystem, with revenue being distributed among various stakeholders. UPI's global reach has also expanded, with the payment system now accepted in 11 countries.
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