UPI tops festive season payments, transactions jump to US$ 200 billion: Bank of Baroda
- IBEF
- November 3, 2025
Unified Payments Interface (UPI) has emerged as the leading payment mode during the festive season, with total transactions reaching Rs. 17,80,000 crore (US$ 200 billion), up from Rs. 15,10,000 crore (US$ 170 billion) in the same period last year, according to a Bank of Baroda report. The sharp rise highlights robust consumer spending and continued digital adoption across the country during festivals like Dussehra and Diwali. UPI transaction value grew 2.6% MoM in September 2025, while debit card payments surged to Rs. 65,395 crore (US$ 7.37 billion) from Rs. 27,566 crore (US$ 3.11 billion) a year ago, reflecting revived card usage.
The report also noted that credit card spending remained restrained, suggesting a consumer preference for direct and debit-based payments. Combined digital and card transactions totalled Rs. 18,80,000 crore (US$ 211 billion), signalling a clear revival in retail consumption. Average spending per transaction was highest for debit cards at Rs. 8,084 (US$ 91.07), followed by credit cards at Rs. 1,932 (US$ 21.76) and UPI at Rs. 1,052 (US$ 11.86), indicating UPI’s dominance in small and mid-value purchases. Spending rose across e-commerce, apparel, electronics, grooming, and liquor categories, aided by goods and service tax (GST) rate cuts and income tax benefits. The report concluded that private consumption demand is likely to stay buoyant in Q2 and Q3 FY26.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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