UPI transaction volumes increased 5.8% month-on-month, while festive spending, online shopping and digital payments pushed transaction value to a new high.
Highlights
- UPI transactions reached a record 25.50 billion in October 2026.
- Transaction volume increased 5.8% compared with September.
- Total transaction value touched ₹31.5 lakh crore.
- Payment value registered 16% year-on-year growth.
- Festive shopping, Navratri and online sales boosted digital transactions.
- Experts expect further growth in November as Dhanteras and Deepavali approach.
New Delhi: India’s Unified Payments Interface (UPI) recorded its highest-ever monthly transaction volume in October 2026, driven by festive shopping, increased online sales and growing adoption of digital payments across the country.
According to data released by the National Payments Corporation of India (NPCI), UPI transactions rose 5.8% month-on-month to a record 25.50 billion in October. The total transaction value reached ₹31.5 lakh crore, reflecting strong consumer spending during the festive season.
The transaction value registered a 16% year-on-year increase, although the growth was slower than the 23% rise in transaction volumes. This indicates that the average value per transaction declined even as digital payment usage continued to expand.
Festive Shopping Boosts Digital Payments
The October surge was supported by Navratri celebrations and online festive sales, which encouraged consumers to make more digital purchases.
Industry experts believe the festive calendar played an important role in the strong performance. Unlike last year, when Dhanteras and Deepavali fell in October, both festivals are scheduled for November this year.
This shift is expected to sustain digital payment momentum in November as consumers increase spending on electronics, apparel, jewellery, household goods and other festive purchases.
Akshay Mehrotra, Managing Director and Group CEO of Fibe, said the festive season had accelerated spending across shopping, travel, dining and lifestyle categories.
He expects purchases of electronics, apparel, gifts and household essentials to gather pace ahead of Deepavali, while Dhanteras could drive higher-value transactions in gold and traditional festive purchases.
UPI Adoption Continues to Expand
Industry leaders highlighted that UPI is increasingly becoming an essential part of everyday financial transactions.
Anand Kumar Bajaj, Founder, MD and CEO of PayNearby, said UPI continues to make financial interactions simpler and more accessible across different sections of society.
Meanwhile, Reeju Datta, Co-founder of Cashfree, noted that UPI had processed more than ₹1 lakh crore in payments per day for the first time.
He attributed the slower growth in transaction value compared with volumes partly to changes in the festive calendar.
Digital Payment Infrastructure in Focus
Despite the strong growth, industry experts have raised concerns about the long-term commercial sustainability of digital payments infrastructure.
Mehrotra highlighted the importance of keeping digital payments affordable for consumers and merchants while ensuring that the ecosystem remains financially sustainable.
The proposed Merchant Discount Rate (MDR) framework has also attracted attention after its implementation was reportedly deferred until after Deepavali.
With festive demand expected to remain strong, November could witness another increase in UPI activity, reinforcing India’s position as one of the world’s leading digital payments markets.
