This year's Diwali night was not just about the lights and fireworks; on October 31, the nation's digital payment highway, the Unified Payment Interface (UPI), registered an astounding 644 million transactions, more than five times its daily average.

Transactions on the festival day were 20–25% more than the typical daily average of 510–520 million transactions, according to data from the National Payments Corporation of India, which manages UPI.

According to industry data, the increase in online payments was caused by a boom in e-commerce transactions, which included purchases of anything from books to pet supplies, new digital media subscriptions, and even holidays.

NPCI recorded 565 million UPI transactions on October 29, the day of Dhanteras, and an additional 546 million transactions on October 30.

In comparison to the daily average of UPI payments, all three days saw increased economic activity and, consequently, digital payment transactions.

Nomura stated in a research study titled India: Taking the festive spending pulse, released on November 5, that "the Diwali month is typically characterized by a surge in consumer demand, aggressive marketing and discounts by retailers, increased demand for gold and jewellery, and fewer working days."

The financial division of the massive online retailer Amazon, Amazon Pay, reported that its credit products performed well during the holiday season thanks to promotions and incentives for both credit card swipes and EMI purchases.

Compared to last year, the use of Amazon Pay ICICI Bank credit cards increased by 50% during this year's Amazon sale season. According to the corporation, a third of its customers made payments via the Amazon Pay UPI interface. Amazon held its holiday sales for nearly the whole month of October.

Customers choose to spend their high-value discretionary money this year, notably on experiences. With Diwali night occurring on a Thursday this year, customers booked hotels and vacations for the extended weekend, resulting in a 60% increase in holiday spending on Cashfree's platform, a payment aggregator.

According to a Cashfree spokesman, payments for digital goods increased by 75% overall during the holiday season.

Based in Bengaluru Customers purchasing OTT (over-the-top) subscriptions increased by 56%, and those purchasing pet supplies increased by 63%, according to Razorpay, one of the biggest payment aggregators in the nation. During the holiday weeks, there was a significant demand for gift boxes and savory items tailored to family pets on rapid commerce sites like Swiggy, Instamart, and Blinkit.

According to statistics from payment companies, conventional products like gold, jewelry, and clothes were also frequently purchased online.

In the previously cited research, Nomura stated that during this year's holiday season, online sales increased more quickly than offline sales. It stated that demand in tier two and tier three cities was the main driver of this.

Offline sales growth may have been slower, but credit card-based UPI transactions at these locations clearly increased.

The use of RuPay credit cards in local stores has steadily increased, according to Kiwi, a fintech firm that partners with Yes Bank and Axis Bank to provide its customers these cards.

RuPay credit cards are the only ones that the Reserve Bank of India permits to use UPI.

According to Kiwi cofounder Mohit Bedi, consumers in tier-I cities spent more on experiences, with eating accounting for 22% and jewelry for 18% of spending.

In contrast, consumers in tier-II cities tended to buy necessities, as evidenced by a 41% increase in electronics sales and a significant 64% increase in general store expenditure.

Kiwi collected this data from its one lakh users across 400 cities.