The Unified Payments Interface (UPI) has emerged as the preferred payment mode during India’s festive season, with total transactions reaching ₹17.8 lakh crore (US$ 200 billion), according to a report by Bank of Baroda. This marks a significant increase from ₹15.1 lakh crore (US$ 170 billion) recorded during the same period last year, underscoring robust consumer spending and continued digital adoption during festivals such as Dussehra and Diwali.
Key Highlights
- UPI Transaction Value: ₹17.8 lakh crore (US$ 200 billion), up from ₹15.1 lakh crore in 2024
- Month-on-Month Growth (September 2025): 2.6%
- Debit Card Payments: ₹65,395 crore (US$ 7.37 billion), up sharply from ₹27,566 crore (US$ 3.11 billion)
- Combined Digital & Card Transactions: ₹18.8 lakh crore (US$ 211 billion)
Changing Consumer Payment Trends
The report highlighted a strong consumer shift toward direct and debit-based digital payments, while credit card spending remained relatively muted, indicating cautious borrowing behaviour.
Average spending per transaction was led by:
- Debit Cards: ₹8,084 (US$ 91.07)
- Credit Cards: ₹1,932 (US$ 21.76)
- UPI: ₹1,052 (US$ 11.86)
This demonstrates UPI’s dominance in small and mid-value purchases, while debit cards continued to see higher ticket-size spending.
Sectoral Spending Trends
Spending saw broad-based growth across e-commerce, apparel, electronics, grooming, and liquor segments. The increase was supported by GST rate cuts, income tax benefits, and attractive festive discounts from retailers and online platforms.
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