Festive Demand Pushes India's Monthly UPI Volumes and Values to New Highs

Digital payment activity surged to unprecedented levels in October, boosted by spending surrounding major cultural festivals and e-commerce sales events. Data released by the National Payments Corporation of India (NPCI) shows that Unified Payments Interface (UPI) transaction volume reached a record 25.47 billion, marking a 23% increase compared to the same period last year.

The total value of transactions processed through the platform climbed 16% year-on-year to a record ₹31.53 lakh crore. On a daily basis, transaction values averaged over ₹1 lakh crore for the first time, while daily transaction counts reached 822 million. Daily volume peaked at 873 million on October 9 and stayed high through the days leading up to Dussehra.

The October figures reflect a rebound from a dip observed in August and September. Industry experts noted that consumers used UPI for larger festive purchases, such as gold, alongside routine expenses. This expansion occurred despite higher prices for electronics and dampening demand for certain premium items, and was supported by the government's decision to defer merchant fees on UPI transactions until after Diwali.