Business/Alive News: India’s digital payment system Unified Payments Interface (UPI) recorded a major milestone in October 2026, with its average daily transaction value crossing ₹1 trillion for the first time. The festive season and increased shopping activities contributed to the sharp rise in digital payments.
UPI recorded an average of 822 million transactions per day in October, the highest daily volume since the payment system was launched.
According to the data, a total of 25.47 billion UPI transactions worth ₹31.53 trillion were processed during October. This was around 23% higher in volume compared to 20.7 billion transactions in October 2025. The total transaction value also increased by 16% from ₹27.27 trillion recorded in the same month last year.
The rise in UPI payments was supported by Navratri celebrations, festive shopping and major online sales. People used digital payments not only for everyday purchases but also for expensive festive items.
In September 2026, UPI processed 24.06 billion transactions worth ₹29.37 trillion. In August, the system recorded 24.5 billion transactions amounting to ₹29.82 trillion.
Industry experts said the festive season helped increase both the number and value of digital payments. They also highlighted the need to keep digital payments affordable for customers and businesses.
Meanwhile, the proposed Merchant Discount Rate (MDR) on selected person-to-merchant UPI transactions has reportedly been postponed until after Diwali. The proposal has raised discussions about maintaining the financial sustainability of India’s digital payment system while ensuring affordable services for merchants and consumers.
