India's digital payments boom: UPI hits all-time highs amidst October festive transactions

New Delhi: The Unified Payments Interface (UPI) is experiencing a festive season surge, with the average daily transaction value in October rising 13 per cent from September to ₹94,000 crore, according to data from the National Payments Corporation of India (NPCI).

With more than a week remaining in the month, UPI is on course to register its highest-ever monthly performance, fuelled by Diwali spending and recent GST rate reductions. This marks one of the strongest month-on-month growth trends for UPI in recent years.

Accounting for nearly 85 per cent of all digital payments in India, UPI has also reached new records in daily transaction volumes. On the eve of Diwali, it recorded an all-time high of 740 million transactions in a single day.

So far this month, the average daily volume stands at 695 million, up over 6 per cent from September’s record 654 million.

The festive period traditionally drives UPI growth, with Dusshera and Diwali boosting spending. While Dusshera fell in September this year, Diwali celebrations on October 20 have triggered another sharp rise in digital transactions.

By October 20, UPI had surpassed the ₹1 lakh crore mark in daily transaction value six times this month, twice as many days as in September.

Typically, digital payment activity peaks early in the month due to salary credits and EMI payments before tapering off. UPI transactions often decline to around ₹60,000 crore in daily value by mid-month.

However, with sustained momentum this October, experts predict a record-breaking month, with total transactions likely to exceed ₹28 lakh crore, surpassing the previous record of ₹25 lakh crore.

IANS