Record Growth in UPI Transactions: May Sees Significant Increase

UPI Transactions Reach New Heights

In May, the Unified Payments Interface (UPI) achieved unprecedented levels in both transaction value and volume. The total value surged by 3% to reach ₹29.90 trillion, up from ₹29.03 trillion in April. Additionally, the volume of UPI transactions climbed to 23.20 billion, marking a 4% increase from the previous month's 22.35 billion, according to data released by the National Payments Corporation of India (NPCI). Daily transactions also saw a slight rise, reaching 748 million in May compared to 745 million in April.

Conversely, the Immediate Payment Service (IMPS) experienced a decline in transaction volume, dropping to 358 million from 362 million last month, with its value decreasing to ₹6.96 trillion from ₹7.01 trillion. On a positive note, FASTag transactions increased by 5%, totaling 375 million, with their value rising by 4% from ₹7,025 crore to ₹7,308 crore. However, Aadhaar Enabled Payment System (AePS) transactions fell by 6% to 88 million in May, down from 94 million in April, with a corresponding decrease in value to ₹25,247 crore from ₹27,640 crore.

Anand Kumar Bajaj, the Founder, MD, and CEO of PayNearby, commented on the growth, stating, “UPI continues to solidify its position as one of Bharat’s most reliable digital payment systems. In May 2026, UPI facilitated 23.20 billion transactions valued at ₹29.90 lakh crore, reflecting a 24% increase in volume and a 19% rise in value. This ongoing growth illustrates how digital payments are becoming integral to daily commerce, spanning urban areas, local shops, and rural communities.” He further noted, “It is encouraging to see UPI evolve from a convenience-based payment method to a vital business tool for consumers, local retailers, and micro-entrepreneurs. Moreover, advancements in cross-border acceptance, merchant infrastructure, security, and credit integration are enhancing trust within the ecosystem.”