UPI may create this monthly transactions record for first time in October 2025, here’s why

India's real-time payment network, the Unified Payments Interface (UPI), is expected to set a new monthly record in October. Driven by festive spending, lower GST rates, and sustained consumer adoption of digital transactions, the payment platform may surpass Rs 28 lakh crore in monthly transaction value for the first time, exceeding its previous record of Rs 25 lakh crore.

According to a report by the Economic Times, the average daily transaction value has already jumped 13% from September to Rs 94,000 crore, signalling strong momentum heading into the final days of the month. Multiple records have been set in volume as well, including daily transactions that reached 740 million on Diwali eve. In contrast, the average daily volume reached 695 million, up more than 6% from September's record.

What may be the reason behind this growth in UPI

As per the report, the surge comes despite a subdued September, when digital payment activity dipped to a fiscal-year low as consumers deferred spending ahead of GST rate reductions that took effect on September 22. With festive shopping now underway, UPI has recorded six days of over Rs 1 lakh crore in daily value so far in October, double the tally from the previous month.Festival-linked purchases and the timing of salary inflows are amplifying payment activity, pushing UPI values to peak levels typically seen in early-month cycles dominated by salaries and EMIs.

The combination of holiday demand and favourable tax rates has extended those peaks deeper into the month.To compare, credit card payments appear to have cooled after hitting a record high in September, when e-commerce sales on Amazon and

Flipkart

drove online spending to Rs 1.18 lakh crore.With the large sales concluding before October, UPI is emerging as the primary beneficiary of ongoing festive consumption.With Diwali-week transactions already above trend, UPI is set to deliver not only a record October but also reinforce its position in India's digital payments landscape, now accounting for roughly 85% of all digital transactions nationwide.