UPI sets new record: Transactions reach ₹29.9 lakh crore in May

Transactions through the Unified Payments Interface (UPI) touched a an all-time high in May, with the total value of transactions surging to ₹29.90 lakh crore and volumes reaching 23.2 billion, according to data released by the National Payments Corporation of India (NPCI).

The surge was driven by increased consumer spending during the summer travel season and higher digital payments linked to the Indian Premier League (IPL). The latest figures reflect the rising appeal of digital payments in India, with UPI maintaining its position as the country's most widely used payment platform for both merchant and person-to-person transactions.

NPCI's report also showed that the value of UPI transactions was at ₹29.03 lakh crore in April against ₹25.14 lakh crore in the same month a year ago, registering a 19% growth on an annual basis.

In terms of volume, UPI transactions climbed to a record 23.2 billion in May, marking a 24% increase from 18.67 billion transactions in the corresponding period. The latest figure also surpassed the 22.35 billion transactions processed in April 2026, highlighting the continued growth in digital payment adoption across the country.

What does this mean in terms of demand?

May's numbers reflect strong organic demand, Akash Sinha, the co-founder and CEO of Cashfree Payments was quoted as saying by news agency PTI. He added that summer travel, IPL 2026, and seasonal consumer spending drove 23.20 billion transactions worth ₹29.90 lakh crore during the month, which is a healthy month-on-month recovery and a continuation of UPI's steady upward trajectory.

The RBI's Payments Systems Report shows UPI's average ticket size has declined from ₹1,848 in 2021 to ₹1,313 in 2025, he said, adding, this is not a concern, it is a sign of a maturing ecosystem.

"The next growth frontier will be additive to all of this. Credit-on-UPI is still in early innings and represents a significant new volume pool. Cross-border UPI is live in over eight countries and expanding, bringing a whole new transaction category onto the rails," he told the news agency.

UPI facility live is 7 foreign nations

India's UPI already operational in seven other countries, including the United Arab Emirates (UAE), Singapore, Bhutan, Nepal, and Mauritius, allowing users to make seamless digital payments using the platform, PTI reported.

NPCI, an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association, is an umbrella organisation for operating retail payments and settlement systems in India (IBA). The body is responsible for operating the UPI facility used for real-time payments between peers or at merchants' end while making purchases and payments.

(with inputs from PTI)