India's UPI transaction volume reached a new peak in October 2026. According to a report by the National Payments Corporation of India, the country’s UPI volume has risen by 5.8% MoM to a record 25.47 Bn, compared to 24.07 Bn in September.
The total value of these transactions also rose 7.4% to Rs. 31.53 lakh crore, compared with Rs. 29.37 lakh crore in the previous month. According to the NPCI report, UPI transactions grew 23% in volume and 16% in value compared with October last year. The platform also crossed the 25-billion monthly transaction mark for the first time.
The report has highlighted that UPI processed an average of 822 Mn transactions a day in October, which was around 802 Mn in September. Average daily transaction value increased to Rs. 1,01,707 Cr from Rs. 97,913 Cr.
Once these record numbers surfaced, NPCI withdrew its plan to introduce Merchant Discount Rate charges from October 15 until after Diwali. Under the proposed rules, eligible merchant payments above Rs. 2,000 will carry a 0.4% charge. The fee will be capped at Rs. 300 for payments of Rs. 75,000 and above.
Regular payments between individuals will not attract this charge. The move could help banks and payment companies earn more from UPI. However, some merchants are concerned that these charges could increase their costs.
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UPI is now a common payment option. Whether it’s a grocery store, paying for food, or cab fare, people use UPI apps for ease of payment. However, the rising number of transactions also raises an important question: Are people making more small payments instead of fewer large ones?
This is probably true that UPI is mostly used for low-cost payments, though the NPCI data didn’t shed any light on it. It also does not show whether people are changing their spending habits or cutting back on bigger purchases.
UPI's October record shows how deeply digital payments have become part of daily life in India. However, higher transaction numbers alone will not ensure steady earnings for payment companies. The real challenge is to find a balance between making UPI affordable for merchants and creating a way for banks and payment providers to earn from the growing network.