UPI Surges Past 10 Billion Merchant Transactions in October, Dominates Digital Payments

New Delhi: The Unified Payments Interface (UPI) has cemented its position as India’s preferred digital payment method, surpassing 10 billion merchant transactions in October 2023. This represents a remarkable 53% year-on-year growth, driven by increased adoption during the festive season.

According to data released by the National Payments Corporation of India (NPCI), UPI processed a total of 16.5 billion transactions in October. Diwali day, October 31st, witnessed a record-breaking 644 million transactions, solidifying UPI’s dominance.

While UPI continues its upward trajectory, other payment methods have seen mixed fortunes. Credit card transactions surged 35% to 433 million in October, as reported by the Reserve Bank of India (RBI). However, debit card usage declined by 24% to 144 million transactions, and mobile wallets experienced a 17% drop to 442 million transactions.

Industry experts attribute this shift to UPI’s growing convenience and security. Deepak Abbot, co-founder of fintech firm Indiagold, stated, “Debit cards are now primarily used for ATM withdrawals, and mobile wallets have become less appealing due to UPI’s broader acceptance.”

Despite a slowdown in unsecured credit growth, the number of credit cards in circulation has reached a record high of 106 million. Outstanding credit card debt has also increased to Rs 2.8 lakh crore.