UPI transaction volume rose 5.8% MoM to a record 25.47 Bn in October from 24.07 Bn in September, according to data released by the National Payments Corporation of India (NPCI).
The value of transactions processed through the Unified Payments Interface (UPI) increased 7.4% MoM to a record ₹31.53 Lakh Cr from ₹29.37 Lakh Cr in the previous month.
On a YoY basis, transaction volume grew 23%, while transaction value rose 16%.
October marked the first month in which UPI processed more than 25 Bn transactions and payments worth over ₹30 Lakh Cr. Average daily transaction value also crossed ₹1 Lakh Cr for the first time.
UPI processed an average of 822 Mn transactions a day in October, up from 802 Mn in September. Average daily transaction value increased to ₹1,01,707 Cr from ₹97,913 Cr.
The daily averages provide a clearer comparison of payment activity because October had 31 days against September’s 30. Based on NPCI’s figures, average daily volume increased 2.5% MoM, while average daily value rose 3.9%.
The increase coincided with the festive season. October’s growth followed a marginal decline in September, when transaction volume fell 1.8% MoM and transaction value dropped 1.5%.
The latest figures come ahead of the proposed introduction of merchant discount rate (MDR) charges on select UPI payments.
The NPCI deferred the rollout, originally scheduled for October 15, until after Diwali, saying the new implementation date would be notified separately.
MDR is the fee merchants pay banks and payment companies to process digital transactions. 4% charge , capped at ₹300 for transactions of ₹75,000 and above.
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