India’s digital payments network reached a new milestone in October, with Unified Payments Interface (UPI) transactions crossing 25 billion for the first time. A surge in festive shopping, online purchases and everyday digital payments pushed the monthly transaction count to a record 25.47 billion, highlighting the growing role of UPI in the country’s financial ecosystem.
The platform processed transactions worth ₹31.53 lakh crore during the month, also marking its highest-ever monthly value. More significantly, the average daily transaction value crossed ₹1 lakh crore for the first time, reaching ₹1,01,707 crore. The figures underline the continued expansion of digital payments across India.
UPI’s October performance represented a considerable improvement over September, when the platform recorded 24.07 billion transactions worth ₹29.37 lakh crore. Transaction volume increased 5.8% month-on-month, while the total value of payments rose 7.4%. The latest numbers indicate that consumers and businesses stepped up their use of digital payment services during the festive season.
The growth was also visible in the daily averages. UPI processed around 822 million transactions every day in October, compared with 802 million in September. This represented an increase of approximately 2.5%. The average daily transaction value climbed from ₹97,913 crore in September to ₹1,01,707 crore in October, registering a rise of nearly 3.9%.
The daily figures are particularly important because October had 31 days, compared with September’s 30. The increase in average daily transactions and payment value shows that the record was not simply the result of an additional day. Digital payment activity strengthened even after accounting for the difference in the number of days.
On a year-on-year basis, UPI transaction volume grew 23% in October, compared with 20.7 billion transactions in the corresponding month last year. The total value of transactions increased 16% from approximately ₹27.27 lakh crore recorded in October 2025. The latest monthly value also crossed the ₹30 lakh crore milestone for the first time.
The festive calendar played an important role in driving the increase. October witnessed heightened consumer activity around Navratri, Durga Puja and Dussehra, alongside major online shopping events. Consumers used UPI for purchases across categories such as clothing, groceries, food, electronics and household products. Payments for dining, travel and other services also contributed to the rise.
E-commerce platforms held their annual festive sales during the month, encouraging shoppers to make purchases through digital channels. UPI’s quick payment process and widespread acceptance at retail outlets, shopping centres and small businesses made it a convenient option for consumers.
The platform’s growth also reflects how digital payments have become part of routine financial activity. From paying for a cup of tea at a neighbourhood shop to completing larger purchases online, consumers increasingly rely on UPI instead of cash. Small merchants, street vendors and service providers have also adopted QR-code payments, making digital transactions accessible beyond major cities.
The record figures come at a time when the proposed introduction of merchant discount rate (MDR) charges on select UPI transactions remains under discussion. The planned implementation, originally scheduled for October 15, was deferred until after Diwali. A revised date has not yet been announced.
MDR is a fee charged to merchants for processing digital payments. The proposed framework includes a charge on certain person-to-merchant transactions, particularly payments above ₹2,000. The proposed rate has been set at 0.4% for eligible transactions. Person-to-person transfers are not covered by the proposed merchant charge.
The proposal has triggered concerns among sections of the merchant community and payment industry. Traders have cautioned that additional transaction costs could affect small businesses and influence the willingness of merchants to accept digital payments. Banks and payment service providers, meanwhile, have argued that a sustainable revenue model is necessary to support the infrastructure required to operate the system.
The postponement has allowed the payments ecosystem to continue operating without the proposed additional charges during the busy festive period. The record October numbers also show that UPI activity remained strong despite uncertainty surrounding the possible changes.
UPI has emerged as one of India’s most widely used real-time payment systems, allowing users to transfer money between bank accounts through mobile applications. Its adoption has expanded through QR-code payments, online shopping, bill payments and person-to-person transfers. The system has also helped bring more small businesses and first-time users into the formal digital payments network.
The October milestone is expected to draw attention to the scale of India’s digital payment infrastructure as the festive shopping season continues into November. With Dhanteras and Diwali approaching, purchases of jewellery, consumer goods, clothing and other festive items could support further activity.
However, the pace of growth will depend on consumer spending, merchant participation and any changes to payment charges. For now, the latest figures offer a clear indication of UPI’s expanding reach, with more than 25 billion transactions completed in a single month and daily payment value crossing ₹1 lakh crore.