Transactions through the Unified Payments Interface (UPI) reached an all-time high in May 2026, driven by summer travel demand and IPL-related spending. According to data released by the National Payments Corporation of India (NPCI), UPI recorded:
- Value: ₹29.90 lakh crore
- Volume: 23.2 billion transactions
This marks the highest level since UPI’s launch in April 2016.
Record Growth in UPI Transactions
- Month-on-Month Growth (April – May 2026):
- Value increased by 3% (₹29.03 lakh crore – ₹29.90 lakh crore)
- Volume increased by 4% (22.35 billion – 23.20 billion)
- Year-on-Year Growth: May 2026 vs May 2025 (₹25.14 lakh crore): 19% growth
- Daily Transactions: Average of 748 million/day (up from 745 million in April)
- April saw a slight dip due to fewer days in the month, followed by strong recovery in May
Shift in Payment Preferences
- UPI continues to dominate everyday retail and merchant payments
- High-value transactions increasingly shifting to credit cards
Credit Card Growth
- Transaction value increased from: ₹8.9 trillion (2021) to ₹23.2 trillion (2025)
- Indicates segmentation:
- UPI: Small, frequent payments
- Credit Cards: High-value spending
Performance of Other Payment Systems
Immediate Payment Service
- Volume declined: 362 million to 358 million
- Value declined: ₹7.01 trillion to ₹6.96 trillion
FASTag
- Volume increased by 5% to 375 million
- Value increased: ₹7,025 crore to ₹7,308 crore
Aadhaar Enabled Payment System
- Volume declined by 6% to 88 million
- Value declined: ₹27,640 crore to ₹25,247 crore
Significance
- Reinforces UPI as the backbone of India’s digital payment ecosystem
- Reflects increasing digital adoption across sectors (travel, retail, quick commerce)
- Shows evolving payment behaviour with clear segmentation between UPI and credit cards
- Highlights India’s leadership in real-time digital payments globally