1 Lakh Crore in Daily Payments: UPI’s Massive Surge Ahead of Potential MDR Charges

UPI transactions shattered records in October, with daily transaction values ​​exceeding ₹1 lakh crore. This rapid adoption of UPI—just before the potential introduction of Merchant Discount Rate (MDR) charges—is remarkable.

Digital payments in India are growing steadily. People increasingly rely on apps like PhonePe, Google Pay, and others for transactions of all sizes—from small, everyday purchases to larger payments—as these platforms offer convenience and eliminate the need for frequent trips to an ATM. Driven by this trend, UPI transactions hit a record high in October 2026, with daily transaction volumes reaching approximately ₹1 lakh crore for the first time.

The festive season has further accelerated the use of UPI. This surge comes at a time when the government is preparing to potentially implement MDR charges on UPI payments.

A Massive Surge in October Transactions

According to data from the National Payments Corporation of India (NPCI), a total of 25.47 billion (2,547 crore) transactions were processed via UPI in October 2026, amounting to a total value of ₹31.53 lakh crore. For comparison, in October 2025, there were 20.7 billion UPI transactions. This represents a year-on-year increase of approximately 23% in the number of transactions, while the total value of transactions grew by 16%.

Daily Transaction Volume

In October, UPI recorded an average of 82.2 crore transactions per day—the highest figure to date. This underscores the growing preference for digital payments across the board, from small local shops to large shopping malls and online retail.

Why did the number of transactions increase?

The month of October saw a series of consecutive festivals, such as Navratri and Dussehra. Furthermore, online shopping sales also took place during this period, leading to a surge in consumer spending. Consequently, the use of UPI increased for purchases across categories like clothing, electronics, household goods, and more. This is the reason why both the volume of UPI-based payments and the total transaction value saw a significant rise.