UPI Transactions Reach New Record In May, Summer Travel & IPL Spending Drive Digital Payments Surge

New Delhi: Unified Payments Interface (UPI) transactions touched a record high in May, driven by strong consumer spending during the summer travel season and the Indian Premier League (IPL).

According to data released by the National Payments Corporation of India (NPCI), UPI transactions reached 23.2 billion in volume and Rs 29.90 lakh crore in value during May, the highest ever recorded on the platform.

The achievement marks a sharp increase from April, when UPI recorded 22.35 billion transactions worth Rs 29.03 lakh crore.

Strong Growth in Digital Payments

The latest figures also show continued year-on-year growth in digital payments across the country.

The value of UPI transactions rose 19 percent from Rs 25.14 lakh crore in May last year to Rs 29.90 lakh crore this year. Transaction volume increased 24 percent from 18.67 billion during the same period.

The steady rise reflects the growing use of digital payments for everyday purchases, travel bookings and entertainment-related spending.

Travel and IPL Boost Transactions

Akash Sinha, co-founder and CEO of Cashfree Payments, said May's numbers reflect strong organic demand across sectors.

According to him, summer travel, IPL 2026 and seasonal consumer spending helped drive the record 23.2 billion transactions during the month.

He said the latest figures indicate a healthy month-on-month recovery and underline UPI's continued growth momentum.

Average Transaction Size Declines

Sinha pointed out that the Reserve Bank of India's Payments Systems Report shows the average UPI transaction value has fallen from Rs 1,848 in 2021 to Rs 1,313 in 2025.

He said the decline should not be viewed negatively, as it reflects the growing adoption of UPI for smaller, everyday transactions and signals a more mature digital payments ecosystem.

New Growth Opportunities Emerging

Industry experts believe the next phase of growth will come from credit-on-UPI services and international expansion.

Sinha said credit-on-UPI remains at an early stage and could create a significant new pool of transactions in the future.

UPI is already operational in several countries, including the United Arab Emirates, Singapore, Bhutan, Nepal and Mauritius. Cross-border UPI services are also expanding, creating new opportunities for digital payments beyond India.

NPCI, an initiative of the Reserve Bank of India and the Indian Banks' Association, operates UPI, which enables real-time payments between individuals and merchants across the country.