In October, UPI surpassed 10 billion merchant transactions, marking a 53% increase from the previous year, showcasing its growing dominance in India's digital payment landscape. With 16.5 billion total transactions, UPI emerged as the preferred payment method. On Diwali, UPI recorded a record-breaking 644 million transactions. Credit card transactions rose by 35%, while debit card transactions declined by 24%. The industry witnessed a shift towards UPI, impacting traditional payment methods like cards and mobile wallets.
In a testament to its growing popularity and convenience, the Unified Payments Interface (UPI) achieved a remarkable milestone in October, surpassing 10 billion merchant transactions. This marked a substantial 53% increase compared to the previous year, showcasing the remarkable surge in digital transactions during the festive season. UPI has emerged as the preferred choice for digital payments in India, outshining traditional methods like cards and mobile wallets.
Data released by the National Payments Corporation of India (NPCI) revealed that UPI recorded a total of 16.5 billion transactions in October, underscoring its widespread adoption and usage across the country.
On the auspicious occasion of Diwali, UPI witnessed a record-breaking 644 million transactions on October 31, as reported by ET. This surge in transactions highlighted the growing trust and reliance on UPI for seamless and secure payments.
While UPI experienced the highest growth rate among digital payment modes, credit card transactions also saw a substantial increase of 35% in October, reaching 433 million transactions. In contrast, debit card transactions witnessed a decline of 24%, reflecting a shift in consumer preferences towards more versatile payment options.
Industry experts had anticipated a surge in credit card usage during the festive season, driven by enticing offers such as EMI payments and buy-now-pay-later options. However, the lack of attractive EMI offers on debit cards this year contributed to the decline in their usage, as observed by industry insiders.
The decline in mobile wallet transactions, as indicated by RBI data, further emphasized the waning popularity of wallets in comparison to the convenience offered by UPI. With UPI becoming the go-to payment method for many Indians, traditional payment modes like debit cards and mobile wallets have faced a decline in usage.
The temporary suspension of operations at Paytm Payments Bank also had a notable impact on the industry, affecting transaction volumes and reshaping the digital payments landscape.
Despite these shifts, the rise of UPI as the preferred account-based payment method has been significant, with industry executives noting that cards are predominantly used for credit-based transactions. The total number of credit cards issued has reached a record high of 106 million, underlining the continued evolution of the digital payments ecosystem in India.