PhonePe, Google Pay Face Dip in UPI Transactions in September as Gaming Payments Plunge

India’s digital payments ecosystem witnessed a mild slowdown in September, with total UPI (Unified Payments Interface) transactions dropping slightly from August levels. According to data from the National Payments Corporation of India (NPCI), the platform processed 19.63 billion transactions worth ₹24.89 lakh crore during the month.

Despite the overall stability in value, transaction volumes declined marginally, signaling a short-term correction in digital payment trends.

PhonePe, Google Pay Maintain Lead Despite Minor Dip

PhonePe continued to dominate the market with 45.6% of total transaction volume and 48.4% of total transaction value. Google Pay followed closely with 34.8% volume share and 35.1% value share, while Paytm ranked third with 7.1% of volume and 5.8% of value.

Compared to August, both PhonePe and Google Pay saw marginal declines — PhonePe’s volume fell from 45.74% to 45.6%, and Google Pay’s from 35.3% to 34.8%. Paytm’s performance remained steady with a slight uptick in share.

Together, the three platforms processed an estimated 17.4 billion transactions in September, down from record highs of 9 billion, 7 billion, and 1.4 billion respectively in August.

Emerging Players Expand Footprint

New entrants like Navi and super.money continued to grow steadily in India’s booming UPI ecosystem. Navi accounted for 2.7% of total transactions and just over 1% of total value, while super.money handled 1.3% by volume and 0.4% by value.

Apps such as Axis Bank’s digital suite, CRED, BHIM, FamApp by Trio, and Amazon Pay made up the remaining market share. Interestingly, CRED managed a 2.2% share by value, despite relatively fewer transactions — reflecting its user base of high-value spenders.

Where UPI Spent the Most

Groceries and supermarkets topped merchant categories with 3.12 billion transactions worth ₹66,409 crore. Fast food, restaurants, fuel stations, telecom, and utility bills also remained key contributors to the ecosystem, reaffirming UPI’s dominance in everyday consumer spending.

Gaming Payments Collapse After Policy Ban

A notable trend was the sharp decline in digital goods transactions, especially gaming-related payments. Following the Indian government’s mid-August ban on real-money gaming platforms, in-game purchases — including virtual currencies, skins, and upgrades — dropped significantly.

While NPCI data may have subsumed some of these under broader digital categories, analysts suggest gaming payment volumes have collapsed by more than half.

The Bigger Picture

The September data underscores UPI’s resilience as India’s preferred payment mode, even amid regulatory changes and shifting user behavior. While leading apps saw minor fluctuations, UPI’s total monthly value remains near record highs, signaling continued consumer confidence in digital payments.