Fueled by summer travel and IPL fever, Unified Payments Interface (UPI) transactions in India soared to record levels in May, showcasing the platform's growing dominance in the digital payments landscape.
Key Points
- UPI transactions hit record highs in May, reaching Rs 29.90 lakh crore in value.
- The surge in UPI usage was driven by summer travel and the IPL season.
- UPI transaction volume reached 23.2 billion in May, marking a significant increase.
- RBI's Payments Systems Report indicates a decline in average UPI ticket size, signalling a maturing ecosystem.
- Credit-on-UPI and cross-border UPI are expected to drive further growth in UPI transactions.
Summer travel and IPL fever pushed transaction through the popular Unified Payments Interface (UPI) to a record highs of Rs 29.90 lakh crore and 23.2 billion in value and volume terms, respectively, in May, according to data released by the National Payments Corporation of India.
National Payments Corporation of India (NPCI) said the value of transactions was at Rs 29.03 lakh crore in April against Rs 25.14 lakh crore in the same month a year ago, registering a 19 per cent growth on an annual basis.
In volume terms, it set a new record with 23.2 billion transactions during the month, up 24 per cent from 18.67 billion in the corresponding period.
The UPI transaction in volume terms was 22.35 billion recorded in April, 2026.
Key Factors Driving UPI Growth
According to 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.
Future Growth Prospects For UPI
"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 already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, and Mauritius.
About NPCI
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.
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