Festive spending drives record UPI transactions in October

UPI transaction volumes surged to a record 25.47 billion in October, marking a 23% year-on-year increase, according to data from the National Payments Corporation of India (NPCI). The total value of transactions processed on the Unified Payments Interface (UPI) amounted to Rs 31.53 lakh crore, representing a 16% rise from the previous year and the highest on record. The surge in festive spending drove the uptick, with consumers engaging in increased online and offline purchases during the month.

Festive season activities, such as Navratri, Durga Puja, and major e-commerce sales, contributed to the higher transaction volumes and sizes. The average daily transaction value reached a record Rs 1.01 lakh crore, up from Rs 97,913 crore in the previous month. The record transaction count was driven by the government's decision to defer the proposed merchant discount rate (MDR) on UPI transactions until after Diwali, thereby avoiding additional charges during the festive season.

UPI transaction counts climbed to 822 million in October, up from 802 million in September, indicating a continued rise in payment activity beyond the impact of the extra day in the month. Peak transaction activity occurred on October 9, a week before Navratri, and remained robust until October 19, a day before Dussehra, before easing off.