UPI Transactions Surge in October Amid Ongoing GST 2.0 Reforms

New Delhi, Nov 2025 : India’s digital payments ecosystem continued its rapid expansion in October, with Unified Payments Interface (UPI) transactions recording double-digit growth both in volume and value, according to data released on Saturday by the National Payments Corporation of India (NPCI).

As GST 2.0 reforms advance, UPI logged 20.70 billion transactions in October, marking a 25 per cent year-on-year increase. The value of these transactions also rose sharply, reaching ₹27.28 lakh crore, a 16 per cent annual growth. Month-on-month, UPI transaction value climbed from ₹24.90 lakh crore in September, underscoring continued adoption across consumer and merchant segments.

The platform also showed impressive performance in daily activity. The average daily transaction amount in October rose to ₹87,993 crore, compared with ₹82,991 crore recorded in September. Similarly, average daily transaction volumes increased to 668 million, up from 654 million a month earlier.

The momentum follows a strong September, during which UPI posted 31 per cent year-on-year growth with 19.63 billion transactions, and a 21 per cent monthly increase in transaction value.

While UPI continues to dominate, other digital payment channels also saw steady traction. Instant Money Transfer Service (IMPS) transactions grew 2 per cent year-on-year in October to ₹6.42 lakh crore. Month-on-month, IMPS value rose 6 per cent from ₹5.97 lakh crore in September. The daily IMPS transaction value also increased from ₹19,895 crore in September to ₹20,709 crore in October.

The broader trend reflects India’s accelerating shift toward cashless transactions. Data released earlier this week shows UPI processed 106.36 billion transactions in the first half of 2025, registering a robust 35 per cent year-on-year increase. The total value of these transactions reached an extraordinary ₹143.34 lakh crore, according to Worldline’s India Digital Payments Report (1H 2025).

A major driver of this growth has been the rise in person-to-merchant (P2M) payments, which increased 37 per cent to 67.01 billion transactions in the January–June period. Analysts attribute this surge to the “Kirana Effect,” as small and micro-retailers increasingly adopt digital payments for everyday transactions.

India’s QR-code payment ecosystem has also expanded at a remarkable pace. The number of QR codes in circulation more than doubled to 678 million by June 2025, marking a 111 per cent growth since January 2024.

Together, the latest figures reinforce the widening reach of digital payments in India, with UPI firmly at the forefront of this transformation.