New Delhi: India’s digital payments ecosystem hit an unprecedented milestone this Diwali, as the Unified Payments Interface (UPI) recorded its highest-ever single-day transactions, crossing ₹1.02 lakh crore in value on October 18, according to data from the National Payments Corporation of India (NPCI).
The Diwali eve witnessed over 754 million UPI transactions, underscoring how festive enthusiasm and consumer confidence—combined with lower GST rates and attractive online offers—have accelerated the shift toward a cashless economy.
💰 UPI Hits Record Highs Amid Festive Fervour
In October alone, UPI averaged ₹94,000 crore in daily transactions, up 13% from September’s ₹82,991 crore. The total monthly volume soared to 16.58 billion transactions worth ₹23.5 lakh crore, highlighting the widespread penetration of digital payments across both urban and rural India.
The data also reflects India’s growing preference for digital convenience over cash, especially during the festive season. Apps like PhonePe, Google Pay, Paytm, and BHIM saw record activity across e-commerce platforms and offline retail outlets alike.
“This Diwali shows that UPI has become the backbone of India’s digital economy,” said a senior NPCI official. “From small shopkeepers to large e-tailers, everyone is part of this seamless payment revolution.”
🪔 Festive Cheer Drives Digital Spending
Traditionally, the Diwali period has been associated with a surge in household and retail spending. This year, digital payments dominated, with consumers opting for instant, cashback-linked transactions instead of cash purchases.
Industry experts attribute the spike to lower GST rates on select consumer goods, festive offers, and the growing trust in fintech platforms. Compared to last year’s October average of ₹78,327 crore per day, this year’s figure represents a 20% jump in daily transaction value.
UPI now commands nearly 85% of all digital payments in India, cementing its role as the country’s most important financial technology platform.
💳 Credit-Fueled Consumption on the Rise
Another emerging trend this Diwali was the rise of credit-based digital spending.
- Credit card e-commerce transactions rose 22% year-on-year,
- while debit card usage dropped 24%, signalling a shift toward buy-now-pay-later behavior.
For the second year in a row, online credit card transactions (4.8 million) surpassed point-of-sale (PoS) swipes (4.2 million). Offline spending also rebounded strongly, growing 15.6%, the steepest rise in three years.
In contrast, prepaid wallets and gift cards declined sharply — down 26% in volume and over 50% in value, as consumers continue to prefer UPI’s simplicity and speed over older payment modes.
📈 Fintech Competition Heats Up
While PhonePe and Google Pay remain the market leaders, accounting for around 80% of total UPI transactions, smaller fintechs are gaining ground.
- Navi (founded by Sachin Bansal) processed nearly 500 million transactions in August,
- Flipkart’s Super.Money handled around 250 million, and
- NPCI’s BHIM app saw about 100 million transactions.
This diversification has slightly reduced market concentration, making the UPI ecosystem more competitive and resilient.
🤖 NPCI Launches ‘UPI Help’ for Users
To support users amid rising volumes, NPCI has launched ‘UPI Help’, an AI-powered virtual assistant designed to handle transaction queries, disputes, and AutoPay mandates.
The feature integrates with the UDIR (UPI Dispute Resolution) system and allows users to check transaction status, track complaints, and manage mandates—all in one place. Initially available via member bank portals and DigiSaathi, it will soon expand to major UPI apps through APIs.
🪙 UPI: The Heart of India’s Fintech Revolution
From kirana stores and small vendors to e-commerce giants, UPI has transformed how India transacts. The platform’s ability to handle billions of transactions seamlessly is redefining financial inclusion and boosting digital literacy.
With over 500 million active users, UPI’s festive surge marks another step toward a fully digital economy, showcasing India’s global leadership in fintech innovation.
Summary:
This Diwali, India’s UPI network recorded an all-time high of ₹1.02 lakh crore in transactions — a testament to the country’s digital-first mindset, rising consumer confidence, and technological transformation. As credit-fueled purchases rise and new fintech players emerge, UPI’s dominance continues to define the future of India’s payments landscape.
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
