Chennai: India’s digital payments ecosystem witnessed a remarkable surge in October 2025, as the Unified Payments Interface (UPI) recorded its highest-ever transaction value of ₹27.28 trillion, reflecting the impact of the festive season and improved consumer sentiment. The total transaction volume stood at 20.7 billion, marking a 5% rise in volume and a 10% increase in value compared to September 2025.
This surpasses the previous records — ₹25.14 trillion in May and 20.008 billion transactions in August. Since its launch in April 2016, UPI has become the backbone of India’s digital payment infrastructure. In October alone, the platform processed an average of 668 million transactions per day, valued at around ₹87,993 crore daily — the highest monthly performance ever.
“Digital Payments Fueling India’s Festive Economy”
According to Anand Kumar Bajaj, Founder, Managing Director and CEO of PayNearby,
“This festive season, UPI has emerged as the engine of convenience and commerce — empowering both consumers and merchants across India. Local retailers and assisted digital networks have played a pivotal role in enabling confident digital transactions. As credit-on-UPI and interoperable services expand, India is moving closer to a truly inclusive digital economy.”
Bajaj added that the 25% year-on-year growth in volume and 16% increase in value underscores UPI’s role as a trusted, secure, and universal payment system bridging urban and rural users alike.
IMPS, FASTag and AePS See Parallel Growth
The Immediate Payment Service (IMPS) also reported steady momentum in October, with transaction volume rising 3% to 404 million, up from 394 million in September. The total transaction value increased by 8% to ₹6.42 trillion, compared to ₹5.98 trillion a month earlier.
FASTag transactions grew 8% to 361 million, while transaction value rose 4% to ₹6,686 crore, reflecting strong intercity travel and logistics activity during the festive period.
Meanwhile, Aadhaar Enabled Payment System (AePS) transactions increased 6% to 112 million, with the total value reaching ₹30,509 crore, up from ₹27,388 crore in September — indicating growing rural participation in digital payments.
Digital Momentum Beyond Festivities
Analysts note that the surge was not solely driven by festive shopping but also supported by GST 2.0 relief measures, improved liquidity, and deeper digital penetration in Tier-2 and Tier-3 cities. UPI’s integration with credit and lending platforms is further expected to expand its use cases in the coming quarters.
India’s Digital Payments Revolution Accelerates
October’s record performance reaffirms UPI’s position as the foundation of India’s cashless economy. From small merchants to large enterprises, digital transactions are now central to everyday commerce.
Experts believe that as “Credit on UPI” and interoperable financial services mature, India will continue to lead globally in real-time digital payments — marking a decisive shift from a cash-driven to a digitally empowered economy.
