UPI Transactions Surge to 23.2 Billion in May, Digital Payments Continue Strong Growth

Mumbai: India’s digital payments ecosystem maintained its rapid expansion in May, with Unified Payments Interface (UPI) transactions reaching 23.2 billion, marking a 24 per cent increase compared to the same period last year, according to data released by the National Payments Corporation of India.

The total value of UPI transactions touched nearly Rs 30 lakh crore during the month, standing at Rs 29.90 lakh crore. This represents a 19 per cent year-on-year rise in transaction value, highlighting the growing adoption of digital payments across the country.

On average, UPI handled around 748 million transactions every day in May, with daily transaction values averaging approximately Rs 96,465 crore.

Compared to April, transaction volumes increased by about 3.8 per cent, while the total transaction value registered a nearly 3 per cent month-on-month growth.

Other digital payment channels also recorded significant activity. The Immediate Payment Service (IMPS) processed 358 million transactions during May, while the Aadhaar-Enabled Payment System (AePS) recorded 88 million transactions.

The latest figures build on the strong momentum seen in April, when UPI transactions climbed 25 per cent year-on-year to 22.35 billion, with transaction values reaching Rs 29.03 lakh crore. Average daily transactions in April stood at 745 million, up from 730 million in March.

UPI’s international footprint continues to expand as well. The platform is currently operational in more than eight countries, including United Arab Emirates, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius and Qatar, further strengthening India's position as a global leader in digital payments.

According to government data, UPI has witnessed an extraordinary 12,000-fold increase in transaction volumes over the last decade. From just 2 crore transactions in FY2016-17, the platform processed more than 24,162 crore transactions in FY2025-26.

Operated by the NPCI, UPI has become India's most widely used real-time payment system, enabling seamless and instant bank-to-bank transfers through mobile applications.

WIth inputs from IANS