India’s digital payments system reached a new milestone in October 2026, with the average daily value of Unified Payments Interface transactions crossing ₹1 trillion for the first time. That means more than ₹1 lakh crore moved through UPI each day on average. The record came during the festive shopping season, when spending on celebrations and everyday purchases increased. Average daily transaction volume also reached a new high of 822 million, or about 82.2 crore payments.
Across October, UPI processed 25.47 billion transactions, equivalent to 2,547 crore payments. This was around 23 per cent higher than the 20.7 billion transactions recorded in October 2025. Their combined value reached ₹31.53 trillion, or ₹31.53 lakh crore, up 16 per cent from ₹27.27 trillion a year earlier. The figures show that both the number of payments and the money transferred increased strongly compared with the same month last year.
The festive season helps explain this jump. Navratri celebrations and major online sales fell in October, bringing additional shopping activity. Alongside routine spending, people used UPI for larger festive purchases. A payment method commonly associated with small, everyday transactions therefore also handled increased seasonal spending, helping lift the average daily value above the ₹1 lakh crore mark.
The pattern had started changing before October. From April to August, the number of UPI payments kept increasing, but their daily value remained broadly flat. As a result, the average amount paid in each transaction became smaller. Cashfree co-founder Reeju Datta explained that September and October showed a different trend: payment values grew faster than transaction numbers, increasing the average payment size for two consecutive months. This comparison concerns month-to-month movement, rather than the annual growth figures.
September recorded 24.06 billion UPI transactions worth ₹29.37 trillion. In August, the system processed 24.5 billion payments worth ₹29.82 trillion. October’s figures exceeded both months in transaction volume and total value. The latest milestone therefore reflects more than a rise in payment frequency. It also shows how festive purchases changed the amount of money moving through the system.
However, the record comes alongside a debate over how the payments network should remain financially sustainable. A proposed merchant discount rate, or MDR, concerns charges on selected person-to-merchant transactions. These are payments made by customers to businesses. The proposed framework was initially scheduled for October 5 but was reportedly deferred until after Diwali. The development remains a proposal, rather than confirmation that a new charge has already taken effect.
Industry executives said the long-term sustainability of the payments system needs attention, especially during periods of heavy spending. Akshay Mehrotra, managing director and group chief executive officer of Fibe, highlighted the importance of keeping digital payments affordable for customers and merchants while ensuring that the businesses supporting the network remain commercially sustainable.
October’s milestone brings these priorities together. UPI handled record daily activity as festive shopping increased, demonstrating its growing role in payments. At the same time, the discussion around merchant charges raises a practical question: how can the system support rising demand while remaining affordable and financially viable? Its continued growth makes that balance increasingly important for customers, businesses and payment service providers alike.
