UPI Transactions Reach Record High in October with Rs 23.5 Trillion in Value

In October 2024, India witnessed a record-breaking surge in digital transactions, propelled by the Unified Payments Interface (UPI), Immediate Payment Service (IMPS), FASTag, and the Aadhaar Enabled Payment System (AePS). The increased adoption of these platforms highlights India’s ongoing shift towards digital payment solutions, driven in part by the festive season and growing acceptance among merchants and consumers alike.

UPI Transactions: Record Volume and Value

India’s digital payments ecosystem reached new heights with 16.58 billion UPI transactions, totaling Rs 23.5 trillion in October. These figures mark UPI’s highest monthly volume and value since its introduction in April 2016. Notably, October’s achievements surpassed the previous record of 15.04 billion transactions in September 2024 and a transaction value peak of Rs 20.64 trillion in July.

Festival Season Boost

The growth in UPI transactions was largely fueled by person-to-merchant (P2M) transactions as consumers increased spending on goods and services during the festival season. This surge led to the first instance of UPI surpassing 16 billion transactions and a transaction value exceeding Rs 23 trillion.

Month-on-Month and Year-on-Year Growth

Compared to September, October saw:

• A 10% increase in transaction volume
• A 14% rise in transaction value

In year-over-year (Y-o-Y) terms, UPI transactions grew significantly:

• 45% in volume
• 37% in value

October also recorded daily UPI transactions averaging 535 million in volume and Rs 75,801 crore in value, a notable rise from September’s average of 501 million transactions valued at Rs 68,800 crore.

IMPS Transactions: Consistent Growth in October

The Immediate Payment Service (IMPS), a key platform for instant fund transfers, also saw substantial growth in October. The total volume reached 467 million transactions, marking a 9% increase from September’s 430 million transactions. In terms of transaction value:

• IMPS rose by 11% to Rs 6.29 trillion from Rs 5.65 trillion in September.

Year-over-year comparison showed:

• A 5% decline in transaction volume
• A 17% increase in transaction value

IMPS continues to play an essential role in high-value payments, underlining its importance in the digital payment landscape.

FASTag: Boost in Volume and Value

FASTag, India’s digital toll collection system, also demonstrated notable growth in October. FASTag transactions surged by 8% to 345 million, up from 318 million in September. In terms of transaction value:

• October saw a 9% increase to Rs 6,115 crore, compared to Rs 5,620 crore in September.

Compared to October 2023, FASTag recorded:

• An 8% growth in volume
• A 10% rise in transaction value

The increased FASTag usage reflects both the continued expansion of the toll network and the preference for digital solutions in transport payments.

Aadhaar Enabled Payment System (AePS): Impressive Gains in October

The Aadhaar Enabled Payment System (AePS) experienced one of the most substantial gains in digital payments, underlining its importance in promoting financial inclusion. October saw:

• 126 million transactions, marking a 26% rise from 100 million in September.
• A significant 35% increase in transaction value to Rs 32,493 crore, up from Rs 24,143 crore in September.

Year-over-year, AePS recorded:

• A 26% growth in transaction volume
• A 25% increase in transaction value

The rise in AePS transactions indicates expanding reliance on this system for direct cash transfers and government benefits, particularly in rural and underserved areas.