Is GST 2.0 Driving UPI Transactions to New Heights?
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Synopsis
Discover how GST 2.0 reforms are transforming India's digital payments landscape. In October alone, UPI transactions surged to an astonishing 20.70 billion, with a record transaction value of Rs 27.28 lakh crore. This significant growth underscores the rapid adoption of digital payments across the nation.
Key Takeaways
- UPI transactions reached 20.70 billion in October.
- Total transaction value hit Rs 27.28 lakh crore.
- 25 percent growth in transaction count year-on-year.
- Average daily transaction value was Rs 87,993 crore.
- P2M transactions grew 37 percent to 67.01 billion.
New Delhi, Nov 1 (NationPress) In the wake of the GST 2.0 reforms, the unified payments interface (UPI) experienced a remarkable 25 percent growth in transaction count (year-on-year), totaling 20.70 billion transactions in October. Additionally, transaction values surged by 16 percent annually, reaching Rs 27.28 lakh crore, according to data released by the National Payments Corporation of India (NPCI) on Saturday.
On a month-over-month basis, UPI transactions grew significantly from Rs 24.90 lakh crore in September.
The average daily transaction value in October was recorded at Rs 87,993 crore, a notable increase from Rs 82,991 crore in the previous month, as per NPCI data.
October also saw an average of 668 million daily transactions, up from 654 million in September.
In September, UPI transactions had already shown a robust 31 percent year-on-year growth with 19.63 billion transactions, alongside a 21 percent month-on-month increase in transaction values to Rs 24.90 lakh crore (in August).
Transactions via instant money transfer (IMPS) also saw a 2 percent increase in October, reaching Rs 6.42 lakh crore (on-year) and rising 6 percent from Rs 5.97 lakh crore in September.
The daily transaction volume through IMPS was Rs 20,709 crore, up from Rs 19,895 crore in September.
Furthermore, UPI continues to lead the digital payments sector, with transactions soaring 35 percent year-on-year to hit 106.36 billion in the first half of 2025, as reported this week.
The total transaction value reached a staggering Rs 143.34 lakh crore, showcasing the integral role of digital payments in daily life in India, according to Worldline’s India Digital Payments Report (1H 2025).
Person-to-merchant (P2M) transactions surged 37 percent to 67.01 billion, fueled by the “Kirana Effect,” where small and micro businesses are pivotal to India’s digital economy. The country’s QR-based payment network also saw incredible growth, more than doubling to 678 million by June 2025, marking a 111 percent increase since January 2024.
Point of View
It's clear to us that the rise of digital payments, particularly through UPI, is transforming the economic fabric of India. With GST 2.0 reforms catalyzing this growth, we see a future where digital transactions become the norm, ensuring seamless financial interactions for all citizens.
NationPress
01/11/2025
Frequently Asked Questions
What is the significance of UPI in India's digital economy?
UPI has transformed the way transactions are conducted in India, making digital payments accessible and efficient for millions of users.
How has GST 2.0 impacted UPI transactions?
The GST 2.0 reforms have facilitated an increase in UPI transactions, reflecting greater adoption of digital payment methods.
What were the UPI transaction figures for October?
In October, UPI recorded 20.70 billion transactions worth Rs 27.28 lakh crore.
How do IMPS transactions compare to UPI?
While UPI dominates, IMPS transactions also showed an increase, indicating a growing digital payments ecosystem.
What trends are shaping the future of digital payments in India?
A surge in small businesses adopting digital payments and the growth of QR-based transactions are key trends.
