India's UPI payment volume reaches record 25.47 billion in October
India's Unified Payments Interface recorded 25.47 billion transactions in October, marking the first time the platform crossed the 25 billion monthly transaction threshold.
Data from the National Payments Corporation of India (NPCI) shows a 5.8% monthly increase in UPI transaction volume, reaching 25.47 billion in October. The total value of these transactions grew by 7.4% to ₹31.53 lakh crore, reflecting a strong uptick in digital payment adoption during the festive season.
On a daily basis, the platform processed approximately 822 million transactions, with the average daily value exceeding ₹1 lakh crore for the first time. This growth follows a slight decline observed in September, suggesting a rebound in consumer spending patterns as the year-end shopping period began.
These performance metrics arrive as the industry prepares for the implementation of a Merchant Discount Rate (MDR) for specific UPI transactions. The NPCI has postponed the introduction of this fee structure, which will levy a 0.4% charge on merchant payments exceeding ₹2,000, until after the Diwali holiday period.
The proposed MDR aims to create a sustainable revenue model for banks and payment service providers. While the ecosystem continues to expand, merchant organizations have expressed concerns regarding the potential impact of these costs on digital payment acceptance.