UPI Transactions Hit Record Rs 29.9 Lakh Crore in May, Volume Crosses 23 Billion

India’s digital payments ecosystem continued its strong growth momentum in May, with transactions through the Unified Payments Interface (UPI) touching a new record high in both volume and value during the month, driven by increased consumer spending during the summer vacation season and the Indian Premier League (IPL).

According to the latest data from the National Payments Corporation of India (NPCI), UPI processed 23.24 billion transactions in May, the highest ever recorded in a single month. The transaction volume rose nearly 4% from 22.35 billion transactions logged in April and was 24% higher than 18.67 billion transactions recorded in May last year.

In value terms, UPI transactions surged to an all-time high of Rs 29.90 lakh crore during

the month, compared with Rs 29.03 lakh crore in April. On a year-on-year basis, the value of transactions increased about 19% from Rs 25.14 lakh crore recorded in May 2025.

The strong growth reflects the increasing adoption of digital payments across retail purchases, travel bookings, entertainment spending and merchant transactions. Summer holiday travel and heightened consumer spending during the IPL season are believed to have contributed significantly to the rise in transaction activity.

UPI has emerged as the backbone of India’s digital payments infrastructure, accounting for the bulk of retail digital transactions in the country. The platform continues to witness robust growth as more consumers and merchants shift towards cashless payments.

Anand Kumar Bajaj, founder and MD & CEO, PayNearby, said, “UPI continues to strengthen its role as one of Bharat’s most trusted digital payment rails. In May 2026, UPI processed 23.20 billion transactions worth ₹29.90 lakh crore, growing 24% in volume and 19% in value. The continued growth reflects how digital payments are becoming deeply integrated into everyday commerce from urban centres to neighbourhood stores and rural communities.”

What is encouraging is the evolution of UPI from a convenience-led payment mode to an essential business utility for consumers, neighbourhood retailers, and micro-entrepreneurs. At the same time, developments around cross-border acceptance, merchant infrastructure, security, and credit integration are deepening trust in the ecosystem. At PayNearby, we are witnessing this shift closely through PayNearby Saathi, which is helping onboard the next wave of users by enabling assisted to self-service digital adoption across communities, he added.

“As Bharat moves towards a more digitally inclusive economy, strengthening last-mile access and trust will be critical to making digital financial services more meaningful, accessible and sustainable for every household,” Bajaj said.

Cashfree Payments co-founder & CEO Akash Sinha, May’s numbers reflect strong organic demand. Summer travel, IPL 2026, and seasonal consumer spending drove 23.20 billion transactions worth Rs 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 Rs 1,848 in 2021 to Rs 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 added.

UPI is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, and Mauritius.

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). It runs the UPI used for real-time payments between peers or at merchants’ end while making purchases.