India’s digital payments network continued its rapid expansion in May, with Unified Payments Interface (UPI) transactions climbing to their highest-ever monthly levels in both value and volume, latest data from the National Payments Corporation of India (NPCI) showed.During the month, UPI handled 23.2 billion transactions worth Rs 29.90 lakh crore, surpassing the previous month’s figures of 22.35 billion transactions and Rs 29.03 lakh crore. This reflects a 19% gain as compared to transactions completed over the same period last year, when transactions worth Rs 25.14 lakh crore were processed. The growth was supported by higher consumer activity, with summer travel, IPL 2026 and seasonal spending contributing to the rise in transactions.According to Cashfree Payments co-founder and CEO Akash Sinha, the latest figures highlight the continued strength of demand across the UPI ecosystem.“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.”Sinha also pointed to changes in transaction patterns over the years. Citing the RBI’s Payments Systems Report, he said the average ticket size on UPI has reduced from Rs 1,848 in 2021 to Rs 1,313 in 2025.He said the trend reflects the evolution of the payments ecosystem rather than any slowdown in usage.“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 operational in seven countries, including the UAE, Singapore, Bhutan, Nepal and Mauritius, extending the reach of India’s digital payments infrastructure beyond domestic transactions.NPCI, set up by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), operates retail payment and settlement systems in the country. It manages UPI, which facilitates real-time peer-to-peer transfers as well as payments made to merchants for purchases.
