Transactions through the Unified Payments Interface (UPI) reached a new record high in both volume and value in October, driven by strong festive season spending and economic policy support, according to data from the National Payments Corporation of India (NPCI).
Market participants attributed the surge to increased consumer spending during the festive period, further supported by the rollout of Goods and Services Tax (GST) 2.0 and the income-tax relief announced in the Union Budget.
In terms of numbers, UPI transactions grew nearly 25% year-on-year, touching 20.70 billion in October. The total transaction value stood at ₹27.28 lakh crore, NPCI data showed.
“This festive season, UPI has been a key driver of convenience and commerce — from small purchases to larger business payments — supporting both consumers and local merchants,” said Anand Kumar Bajaj, Founder, MD, and CEO of PayNearby.
On October 18, the UPI platform recorded its highest-ever single-day performance, processing 754 million transactions worth ₹1.02 lakh crore. During the three-day period between Dhanteras and Diwali, average daily UPI volumes stood at 736.9 million, compared to 647.46 million during the same period in the previous month.
Despite the record highs, the annual growth rate in UPI transactions slowed to a 43-month low, continuing a trend that began in April 2022, when volumes grew 111.4% and values rose 99.2% year-on-year. Since then, the growth pace has been steadily moderating.
Industry experts said that while the festive season provided a short-term boost, the slowing year-on-year growth indicates that UPI may be entering a more mature and stable phase after several years of explosive expansion.
