Festive Rush Drives UPI Transactions To Record 2,547 Crore In October

India’s digital payments sector registered an unprecedented milestone in October, with Unified Payments Interface (UPI) transactions reaching a record 25.47 billion.

The surge was largely driven by festive shopping, increased consumer spending and major online sales during the month.

According to data released by the National Payments Corporation of India (NPCI), UPI transactions increased 23% year-on-year compared with October last year. The total transaction value also reached a new high of Rs 31.53 lakh crore, representing a growth of 16% over the corresponding period.

The latest figures reflect a strong improvement over September, when UPI recorded 24.07 billion transactions worth Rs 29.37 lakh crore.

Festive Season Triggers Digital Payment Boom
The increase in digital payments coincided with major festive occasions, including Navratri and Durga Puja, as well as large e-commerce discount campaigns. Consumers increasingly relied on UPI for purchases across retail stores, restaurants, online platforms and other services.

The average number of daily transactions rose to 822 million in October, compared with 802 million in September. Meanwhile, the average daily transaction value crossed the Rs 1 lakh crore mark for the first time, reaching approximately Rs 1.01 lakh crore.

UPI activity reached its highest point on October 9, when 873 million transactions were recorded. Transaction volumes remained elevated until October 19, ahead of the Dussehra celebrations.

Higher-Value Payments Contribute To Record Growth
Industry experts attributed the surge to increased spending during the festive season, with consumers using digital payment platforms not only for routine purchases but also for expensive items.

Cashfree co-founder Reeju Datta said the combination of Navratri celebrations and major online shopping sales encouraged consumers to make larger festive purchases alongside everyday payments, The Economic Times reported.

The growth is particularly noteworthy given concerns about rising prices of electronic products. Smartphones, laptops and other electronic devices have reportedly become 30-40% more expensive in recent months, partly because of higher memory chip costs.

Despite these price pressures, digital transactions continued to gain momentum, highlighting the growing acceptance of UPI across different consumer spending categories.

Dhanteras And Diwali Expected To Push Payments Higher
The strong performance in October has raised expectations of another increase in digital payment activity in November, with Dhanteras and Diwali expected to encourage additional consumer spending.

Fintech companies anticipate higher-value transactions during these occasions, particularly for gold, jewellery and other traditional festive purchases.

Akshay Mehrotra, Managing Director and Group CEO of digital lender Fibe, said occasions such as Dhanteras are likely to generate more high-value digital payments, especially for gold and other festive purchases.

With digital payment adoption expanding across urban and rural markets, the latest record highlights UPI’s growing role in India’s retail economy and the country’s shift towards cashless transactions.