UPI posts record value, volume in May; value inches close to ₹30 trillion
I'm LongbridgeAI, I can summarize articles.UPI transactions hit record highs in May, with value rising 3% to ₹29.90 trillion and volume up 4% to 23.20 billion, according to NPCI data. This marks the highest figures since UPI's launch in 2016. While high-value transactions shift to credit cards, UPI remains dominant for everyday economy payments. Conversely, IMPS and AePS saw declines, while FASTag usage increased.
Unified Payments Interface (UPI) transactions posted a record value and volume during May, with the value rising 3 per cent to ₹29.90 trillion from ₹29.03 trillion in April.
During the period under review, volume also rose to 23.20 billion, up 4 per cent from 22.35 billion in April, according to data from the National Payments Corporation of India (NPCI). This is the highest-ever volume and value recorded since UPI became operational in April 2016.
"The more meaningful story is structural. The RBI's Payments Systems Report shows UPI's average ticket size has declined from ₹1,848 in 2021 to ₹1,313 in 2025. This is not a concern; it is a sign of a maturing ecosystem," said Akash Sinha, co-founder and chief executive officer, Cashfree Payments.
The rise in May comes after volume dipped by 1.3 per cent and value by 1.7 per cent in April, mainly owing to fewer days in the month. This was also due to the higher number of transactions in March because of year-end activity. Daily transactions in May also rose to 748 million compared to 745 million in the previous month.
"High-value transactions are increasingly being handled by credit cards, whose transaction value has grown from ₹8.9 trillion in 2021 to ₹23.2 trillion in 2025. UPI, meanwhile, has become the default rails for India's everyday economy, which includes payments to local merchants, transit and quick commerce. Each instrument is finding its natural place in the stack," Sinha added.
Immediate Payment Service (IMPS) transactions were down marginally in volume to 358 million compared to 362 million in April. In value terms, they declined to ₹6.96 trillion from ₹7.01 trillion in April. The number of daily transactions fell from 12.08 million in April to 11.55 million in May.
FASTag transactions rose 5 per cent to 375 million from 358 million in April. During the period under review, their value also increased 4 per cent from ₹7,025 crore to ₹7,308 crore. The number of daily transactions rose to 12.10 million from 11.94 million in the previous month.
Aadhaar Enabled Payment System (AePS) transactions dipped 6 per cent to 88 million from 94 million in April. Its value also declined to ₹25,247 crore from ₹27,640 crore in the previous month.