PhonePe tops 11.19B August UPI transactions as Google Pay nears 8B

PhonePe processed 11.19 billion UPI transactions worth Rs 14.26 lakh crore in August, holding 45.64% of volume. Google Pay logged 7.91 billion transactions, while the two apps together accounted for 77.9% of UPI volume. A planned MDR on select merchant payments above Rs 2,000 from October 15 could open a revenue stream for participants.

— FiledWed, 16 Sept, 2026, 09:36 IST·First seen Wed, 16 Sept, 2026, 09:35 IST·Source Entrackr

What happened

PhonePe crossed 11.19 billion UPI transactions in August, retaining market leadership, while Google Pay approached 8 billion. The top three apps controlled

Key facts

  • PhonePe: 11.19 billion August UPI transactions; Rs 14.26 lakh crore value; 45.64% volume share; 47.82% value share
  • Google Pay: 7.91 billion transactions; Rs 10.07 lakh crore value
  • Paytm: 1.97 billion transactions; Rs 2.05 lakh crore value
  • Overall UPI: 24.51 billion transactions; Rs 29.82 lakh crore value
  • PhonePe and Google Pay: 77.90% volume share and 81.60% value share

What changed

PhonePe crossed 11.19 billion UPI transactions in August, retaining market leadership, while Google Pay approached 8 billion. The top three apps controlled 85.93% of volume. A new MDR on select merchant payments from October 15 could create revenue for UPI participants.

Why this matters

PhonePe’s 45.64% UPI volume share reinforces its distribution advantage, while the proposed MDR on select merchant payments could make merchant acceptance and premium payment services more economically attractive.

What to watch

  • Final MDR notification details: eligible merchant categories, transaction threshold, rate caps, payer versus merchant incidence and exemptions.
  • Merchant association responses and any litigation, lobbying or regulatory clarification before October 15.
  • Whether PhonePe and Google Pay announce merchant pricing, enterprise contracts, settlement incentives or bundled credit products.
  • Changes in UPI transaction share for PhonePe, Google Pay, Paytm, banks and newer app entrants after MDR implementation.
  • Average ticket-size migration around the Rs 2,000 threshold, including split-payment behavior or increased use of cards and cash.

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