India’s digital payment ecosystem reached a new milestone in October, as the Unified Payments Interface (UPI) logged an average daily transaction value of approximately ₹94,000 crore, representing a 13% increase over September’s average of around ₹82,991 crore.
Drivers of Growth
The surge in transaction volumes is attributed to a combination of festive-season spending and recent Goods & Services Tax (GST) rate cuts. With major festivals like Diwali falling in October this year, consumer activity picked up significantly, especially in retail, e-commerce, and offline purchasing.
Volume and Monthly Outlook
Transaction volumes have also climbed: the average number of UPI transactions per day in October reached around 695 million, up from about 654 million in September. Experts project that the monthly transaction value for October may exceed ₹28 lakh crore, setting a fresh historic high for the payment system.
Implications for Economy & Digital Payments
This jump underscores the deepening digital-payments adoption across India. As UPI increasingly becomes the backbone for peer-to-peer, merchant, and online transactions, the platform’s growth reflects wider consumer behaviour shifts—toward contactless, real-time, and seamless payments. The combination of festive demand and policy cues like GST relief are proving potent growth catalysts.
What’s Next
Given the momentum, stakeholders in fintech, merchants, banks, and regulators are closely watching how UPI evolves further—especially in enabling higher-value transactions, cross-border payments, and integration with newer payment modes. For now, October stands out as a landmark month for India’s payments revolution.
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