India’s digital payments system has started December on a strong note, with Unified Payments Interface (UPI) transactions crossing 700 million every single day for the first six days of the month. Data from the National Payments Corporation of India shows that the first five of these days also recorded transaction values of more than Rs 1 lakh crore each.
This early December surge stands out when compared to previous months. In October, which is known for heavy festival shopping, daily UPI transactions crossed 700 million on only eight days, with four of those around Diwali. November saw just three such days. The 700 million daily mark was first achieved on August 2. On December 6, transaction value touched Rs 96,000 crore, which was just 4 percent short of the Rs 1 lakh crore level.
The government has set a long term goal of reaching one billion transactions per day on UPI. At the current pace, this target now appears achievable sometime next year. In October, total UPI volume hit a record 20.7 billion transactions with a value of Rs 27.3 lakh crore.
UPI now accounts for nearly 85 percent of all digital transactions in the country. It gained widespread use through apps like PhonePe, Google Pay, and Paytm. In recent years, newer fintech players such as Navi and super.money have also added momentum to the platform.
Since there is no merchant discount rate on regular UPI payments, many fintech firms are turning to credit based options. Rupay credit cards linked to UPI are gaining traction as these transactions allow MDR. Banks and payment firms continue to seek MDR for high value transactions and large merchants. At the same time, the annual government subsidy for UPI was cut by one third last year.
October saw the highest ever single day volume on Diwali eve at 754 million transactions. While December has not crossed that peak yet, the month has already begun with exceptional activity.
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