UPI transaction volume rose 4% to 23.66 Bn in July from 22.72 Bn in June, according to data released by the National Payments Corporation of India (NPCI). 

The total transaction value increased 3% to ₹29.88 Lakh Cr during the month under review from ₹28.92 Lakh Cr in June. 

While transaction volume grew 22% YoY, transaction amount zoomed 19% on a yearly basis in July. 

The average daily transaction count rose marginally to 763 Mn during the month under review from 757 Mn in June. Meanwhile, the average daily transaction value stood at ₹96,383 Cr, slightly lower from ₹96,405 Cr recorded in the previous month. 

This comes at a time when the Centre is said to be reconsidering the introduction of merchant discount rate (MDR) on UPI transactions. As per the proposal under consideration, businesses with an annual turnover of ₹1 Cr to ₹1.5 Cr or more would attract an MDR of 0.05% to 0.07%, and only on UPI transactions above ₹2,000.  

This criteria would exempt small and micro businesses that account for roughly 90% of merchants accepting UPI.

Notably, the Payments Council of India (PCI) has been advocating for a 0.3% merchant discount rate (MDR) on UPI transactions at large merchants since 2025. 

Meanwhile, PhonePe and Google Pay continue to dominate the UPI ecosystem, although smaller players like Navi, super.money, WhatsApp, among others, have been steadily gaining share. 

While the app-wise UPI transactions data for July will be released later this month, Navi and super.money saw their market share rise 0.1 percentage point each in June, while PhonePe and Google Pay ceded a small share.  

WhatsApp also surpassed CRED in both UPI market share and transaction volume during the month.