The 23.20 billion transactions in May worth ₹29.90 lakh crore marked a healthy month-on-month recovery
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Unified Payments Interface (UPI) transactions touched a record high in May, with transaction value rising 3 per cent month-on-month to ₹29.90 trillion from ₹29.03 trillion in April, according to data released by the National Payments Corporation of India (NPCI).Transaction volume rose 4 per cent month-on-month to 23.20 billion in May from 22.35 billion in April.Average daily transaction volume stood at 748 million, while the average daily transaction value was ₹96,465 crore.Industry executives attributed the growth to higher consumer spending during the summer travel season, the IPL 2026 tournament and seasonal consumption trends. The resulting 23.20 billion transactions worth ₹29.90 lakh crore marked a healthy month-on-month recovery and extended UPI’s steady growth trajectory.Dominant ForcesThe UPI ecosystem continues to be dominated by PhonePe and Google Pay. In April, PhonePe processed 10.33 billion transactions, while Google Pay handled 7.36 billion transactions. As of April, 713 banks were live on the UPI platform.PhonePe accounted for 46.2 per cent of UPI transaction volume in April and 49.3 per cent of transaction value. Google Pay retained the second spot with a 33 per cent market share by volume, while Paytm remained the third-largest player with about 8 per cent. NPCI is yet to release the market-share data for May.UPI is currently live in seven countries, including the UAE, Singapore, Bhutan, Nepal and Mauritius.Anand Kumar Bajaj, Founder, MD and CEO of PayNearby, said developments in cross-border acceptance, merchant infrastructure, security and credit integration are deepening trust in the UPI ecosystem.Natural PlaceAkash Sinha, Co-founder and CEO of Cashfree Payments, said: “May’s numbers reflect strong organic demand. The more meaningful story is structural. The RBI’s Payments Systems Report shows UPI’s average ticket size has declined from ₹1,848 in 2021 to ₹1,313 in 2025. This is not a concern; it is a sign of a maturing ecosystem.“High-value transactions are increasingly being handled by credit cards, whose transaction value has grown from ₹8.9 lakh crore in 2021 to ₹23.2 lakh crore in 2025. UPI, meanwhile, has become the default rails for India’s everyday economy, including payments to local merchants, transit and quick commerce. Each instrument is finding its natural place in the payments stack.”Published on June 1, 2026
