UPI transaction volume reached a record 25.47 billion in October 2026, with the Unified Payments Interface (UPI) processing payments worth Rs 31.53 lakh crore during the month. According to data NPCI Data, UPI transaction volume increased 5.8% month-on-month (MoM), while transaction value rose 7.4% from September.

Key Highlights

• In October 2026, UPI has prossed a record 25.47 billion transactions valued at Rs 31.53 lakh crore.
• The transaction value grew by 16% YoY with an average of 822 million transactions per day, and the value of UPI rose by 8%.

In September, UPI prossed 24.07 billion transactions that valued Rs 29.37 lakh crore. This indicates that the digital payments platform has seen an all-time high in the month of October, showing continued growth in the real-time payment ecosystem in India.

Reeju Datta, Co-founder, Cashfree Payments noted that the festive season and online sales drove the rise in October, with UPI being used for both larger festive purchases and everyday payments. He explained that payment volumes grew faster than transaction values due to the shifting dates of Dhanteras and Diwali, while strong growth is expected to continue into November.

UPI Transaction Volume and Value Increase in October

In October, the average UPI transactions were processed was 822 million, an increase of 2.5% from 802 million transactions in September. The average daily transaction value also increased to Rs 1,01,707 crore from Rs 97,913 crore during the previous month.

The volume of UPI transaction grew 23% year-on-year (YoY) in October, and the value of transaction rose 16% YoY.

It was a month of 31 days, up from September's 30 days, but with the average number of daily transactions showing strength, it suggests that there was also strength from a per-day perspective as well.

Anand Kumar Bajaj, Founder, MD & CEO, PayNearby stated that the record numbers reflect the deep integration of digital payments into daily life across Bharat. He highlighted the vital role played by neighbourhood retailers in providing assisted access and strengthening last-mile financial inclusion.

UPI Monthly Transaction Volume Reaches New High

In May 2026, UPI hit the milestone of processing 23.2 billion transactions valued at Rs 29.90 lakh crore for the first time.

Transaction volume then grew to 23.66 billion in July and 24.51 billion in August, which was a new high. It dropped to 24.07 billion in September before rising to a new high of 25.47 billion in October.

The latest NPCI data indicate continued expansion in UPI usage, with both transaction volume and value recording month-on-month growth.

Dilip Modi, Founder & CEO, Spice Money emphasized that the milestone reflects the rapid evolution of India’s digital payments ecosystem. He also highlighted the opportunity to further deepen digital adoption and expand assisted financial services beyond urban centres.

PhonePe Leads UPI Market, Followed by Google Pay and Paytm

NPCI data for the month of September shows that PhonePe had the maximum transaction volume in the UPI segment at 45.6%. Google Pay came in second with 32.2% followed by Paytm with 8.1% share.

Together, the three platforms handled nearly 86% of transactions through listed UPI apps. The app-wise breakdown for October has not yet been released.

Meanwhile, Paytm founder Vijay Shekhar Sharma has outlined an ambition to capture one-third of the UPI consumer payments market. Speaking during the company's Q2 FY27 earnings call, Sharma identified increasing consumer market share as a key priority.

Also Read: UPI September Transactions Volume Cross 24 Bn Despite Monthly Dip

NPCI Defers MDR Implementation on Select UPI Transactions

In a separate development, NPCI deferred the implementation of the merchant discount rate (MDR) on select UPI transactions until after Diwali. The revised implementation date will be announced separately.

The decision was taken by the UPI and Services Steering Committee on October 13, keeping the festive season in consideration. The framework was initially scheduled to come into effect on October 15.

Under the proposed framework, a 0.4% MDR will apply to specified person-to-merchant payments above Rs 2,000. The charge will be capped at Rs 300 for transactions of Rs 75,000 and above.

UPI payments of Rs 2,000 or less, along with person-to-person transactions, will remain outside the proposed levy.