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According to the NPCI, which operates the platform, the average daily value of UPI transactions has surged 13 percent over September
UPI
The Unified Payments Interface (UPI), India’s real-time digital payment system, is on track for a record-breaking October, driven by Diwali festivities and lower goods and services tax (GST) rates.
According to the National Payments Corporation of India (NPCI), which operates the platform, the average daily value of UPI transactions has surged 13 percent over September, reaching Rs 94,000 crore, with over a week still remaining in the month. This marks one of the highest month-on-month growth rates for UPI in recent years, a system that now accounts for 85 percent of all digital transactions in India.
Transaction volumes hit new highs
UPI volumes have repeatedly touched record levels this month. On Diwali eve, the platform recorded a historic 740 million transactions in a single day. The average daily volume for October so far is 695 million, up more than 6 percent from the previous record of 654 million in September. Last year, festival sales similarly boosted UPI growth, as both Dusshera and Diwali fell in October. This year, Dusshera occurred in September, with Diwali on October 20.
Rs 1 lakh crore daily transactions repeatedly
By October 20, UPI had crossed the Rs 1 lakh crore daily transaction mark six times, compared with just three days in September. Typically, payment platforms see monthly peaks during the first few days due to salary and EMI payments, which then taper off mid-month. NACH credit transactions, which include salary payments, are also higher at the start and end of the month.
All-time highs in sight
With this momentum, UPI is poised to achieve its highest-ever monthly figures for October, potentially surpassing Rs 28 lakh crore in total transaction value, compared to the current record of Rs 25 lakh crore. While the final days of the month could see some decline, daily values of Rs 94,000 crore already far exceed previous peaks of Rs 81,000 crore in May and Rs 83,000 crore in September. The drop in most digital payments in September can be attributed to consumers waiting for the GST rate cuts, which came into effect from September 22.
Credit card payments lag
In contrast, credit card transactions in October have trended lower than September, when ecommerce-driven sales peaked. Flipkart’s Big Billion Days and Amazon’s Great Indian Festival pushed online credit card spending to a record Rs 1.18 lakh crore in September, with daily transactions surpassing Rs 10,000 crore for the first time on September 22, coinciding with the start of festival sales.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 22, 2025, 12:14 IST
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