The Unified Payments Interface (UPI) is experiencing a significant surge during the festive period, with October's average daily transaction value rising by 13 percent compared to September, reaching Rs 94,000 crore, as reported by the National Payments Corporation of India (NPCI).

Despite having over a week remaining in October, UPI appears set to achieve its best monthly results ever, fueled by Diwali purchases and recent reductions in GST rates.

This represents one of the most robust monthly growth patterns UPI has demonstrated in recent years.

UPI, which facilitates approximately 85 percent of India's digital transactions, has simultaneously achieved record-breaking daily transaction volumes.

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Just before Diwali, UPI established a new single-day record with 740 million transactions.

The monthly average for daily volumes has reached 695 million, representing an increase of over six percent from September's previous record of 654 million.

Festival periods have consistently served as significant catalysts for UPI expansion. The previous year also witnessed increased digital payment activity when both Dusshera and Deepawali occurred in October.

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Although Dusshera took place in September this year, the Deepawali festivities on October 20 seem to have generated another substantial increase.

By October 20, UPI had exceeded the Rs 1 lakh crore threshold in daily transaction value on six occasions during the month, which is twice the frequency observed in September.

Generally, payment platforms experience their highest activity levels early in the month due to salary disbursements and EMI transactions, followed by a decline in spending patterns.

UPI transaction values typically decrease to approximately Rs 60,000 crore daily by the middle of the month. Considering the current strong performance, industry analysts anticipate that October may establish a new UPI record.

The monthly transaction value is projected to exceed Rs 28 lakh crore for the first time, breaking the existing record of Rs 25 lakh crore.

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Additionally, UPI is advancing its worldwide reach, with Japan becoming the most recent country to embrace this streamlined payment system. This important milestone represents a fresh era of digital ease for travelers from India. Through a calculated decision, NIPL, which serves as the global division of the NPCI, has established a groundbreaking partnership with NTT Data Japan. This collaboration will enable Indian tourists to conduct effortless transactions using their smartphones throughout Japan.

Through this newly formed partnership, visitors from India will have the ability to utilize their current UPI-compatible applications for purchases and various services while in Japan. The method remains straightforward and recognizable: simply scan a QR code at retail establishments to finalize a payment. This integration successfully removes the necessity for travelers to transport substantial cash amounts or depend on foreign exchange cards, creating a more streamlined and safer travel experience.