Transactions processed through India’s Unified Payments Interface (UPI) reached a record 25.47 billion in October, a 5.8% increase from the previous month. Data released by the National Payments Corporation of India (NPCI) shows the total value of these transactions climbed 7.4% to ₹31.53 lakh crore.
The October figures represent the first time the platform has surpassed both 25 billion transactions and ₹30 lakh crore in value within a single month. On a year-over-year basis, transaction volume grew 23%, while the total value rose 16%.
Daily Activity and Growth Trends
Average daily transaction values crossed the ₹1 lakh crore mark for the first time in October. The platform processed an average of 822 million transactions daily, compared to 802 million in September. Adjusting for October’s 31 days versus September’s 30, average daily volume grew by 2.5%, while the daily value increased by 3.9%.
This growth follows a slight decline in September, when both volume and value fell by 1.8% and 1.5%, respectively. Industry observers noted that the October surge coincided with the festive season.
Upcoming Merchant Fee Changes
The record figures precede the planned introduction of a merchant discount rate (MDR) on specific UPI payments. The NPCI postponed the rollout, originally set for October 15, until after the Diwali holiday. A new implementation date has not yet been set.
Under the proposed framework, person-to-merchant (P2M) transactions exceeding ₹2,000 will incur a 0.4% charge, with a cap of ₹300 for payments of ₹75,000 or more. Person-to-person (P2P) transfers will remain free. While banks and payment providers anticipate this will create a new revenue stream, merchant organizations have expressed concern regarding the potential increase in payment acceptance costs.
Why it matters: The UPI ecosystem serves as a global benchmark for real-time digital payments. As countries across the Middle East and North Africa explore similar national payment infrastructures to digitize their economies, India’s experience managing transaction volume, fee structures, and merchant adoption provides critical lessons for financial regulators and policymakers.