Diwali lights up UPI: Record Rs 1.02 lakh crore transactions amid festive fervour, lower GST rates
India’s digital payment ecosystem reached dazzling new heights this Diwali, as the Unified Payments Interface (UPI) recorded its highest-ever single-day transaction value and volume. According to data from the National Payments Corporation of India (NPCI), UPI transactions on Diwali eve (October 18) surged to 754 million, amounting to a record Rs 1.02 lakh crore, underscoring how festive fervour and lower GST rates have powered India’s cashless economy.
In October, UPI averaged Rs 94,000 crore in daily transactions, up 13% from Rs 82,991 crore in September. The month saw an average of 695 million daily transactions, up from 654 million the previous month. Overall, UPI clocked an astounding Rs 23.5 lakh crore across 16.58 billion transactions, reflecting the deepening penetration of digital payments across urban and rural India alike.
Festive cheer
The Diwali season has historically been a key period for consumer spending, and this year’s data reveals that Indians are increasingly choosing digital routes over cash. The combination of festive offers, GST reductions on select goods, and seamless payment experiences through apps like PhonePe, Google Pay, and Paytm spurred spending across e-commerce and offline retail.
Industry experts say the festive rush has reaffirmed UPI’s role as India’s dominant digital payment system—now accounting for nearly 85% of all digital transactions. Compared to last year’s October average of Rs.78,327 crore per day, this year’s festive figures indicate both higher consumption and a growing comfort with instant digital payments.
Credit-based spending
Interestingly, Diwali also reflected a broader shift in consumer behavior—from saving to spending. Credit card transactions recorded strong growth, particularly online. Credit card e-commerce volumes jumped 22% year-on-year, even as debit card e-commerce usage dropped 24%, signaling a clear tilt toward credit-fueled consumption.
For the second straight year, online credit-card purchases (4.8 million) outpaced point-of-sale (PoS) swipes (4.2 million), underscoring the dominance of e-commerce platforms during the festive period. Offline spending, however, also showed resilience—PoS transactions grew 15.6%, the sharpest rise in three years after contracting last year.
Meanwhile, debit card payments continued their decline, with both PoS and e-commerce usage falling. Prepaid instruments such as wallets and gift cards saw the steepest contraction—down 26% in volumes and over 50% in value, as UPI’s convenience continued to eclipse older digital payment modes.
