UPI processed 23.20 billion transactions during the month, marking a new peak in volume terms. The total value of transactions rose to ₹29.90 lakh crore, compared with ₹29.03 lakh crore in April and ₹25.14 lakh crore in the same month last year, reflecting a 19% year-on-year growth in value.
On a yearly basis, transaction volumes grew 24%, rising from 18.67 billion in the corresponding period last year. April 2026 had recorded 22.35 billion transactions, showing continued month-on-month expansion.
Market participants said seasonal factors played a key role in the spike.
“Summer travel, IPL 2026, and seasonal consumption spending drove 23.20 billion transactions worth ₹29.90 lakh crore, which reflects strong organic demand,” said Akash Sinha, Co-founder and CEO of Cashfree Payments.
He noted that while UPI continues to scale rapidly, its average ticket size has been gradually declining, indicating wider adoption for small-value payments.
According to Reserve Bank of India data, the average UPI transaction size has fallen from ₹1,848 in 2021 to ₹1,313 in 2025.
“This is not a concern but a sign of a maturing ecosystem,” Sinha said, adding that high-value payments are increasingly shifting to credit instruments even as UPI strengthens its position in daily retail transactions.
He also highlighted emerging growth drivers such as credit-on-UPI and cross-border expansion. UPI is currently live in multiple countries, including the UAE, Singapore, Bhutan, Nepal and Mauritius, with further expansion underway.
Separately, Anand Kumar Bajaj, Founder, MD and CEO of PayNearby, said UPI has become a core part of India’s retail payment ecosystem, extending from urban centres to rural markets.
“UPI continues to strengthen its role as one of Bharat’s most trusted digital payment rails,” he said, adding that the platform is increasingly being used by neighbourhood retailers and micro-entrepreneurs as digital adoption deepens across the country.
NPCI, an initiative backed by the Reserve Bank of India and the Indian Banks’ Association, operates India’s retail payments infrastructure, including UPI, which enables instant peer-to-peer and merchant payments.
