Our Bureau
New Delhi
India’s digital payments ecosystem continues its rapid ascent, with Unified Payments Interface (UPI) transactions touching a record high of Rs 25.14 lakh crore in May 2025, according to data released by the National Payments Corporation of India (NPCI). This milestone marks a 23% year-on-year increase in transaction value, underscoring the growing preference for digital payments across the country.
In May, the total number of UPI transactions soared to 1,868 crore, up from 1,789 crore in April. The average daily transaction count stood at 60.2 crore, reflecting the platform’s widespread adoption for both peer-to-peer and merchant payments. The average daily transaction value reached Rs 81,106 crore, slightly higher than April’s Rs 79,831 crore.
UPI, launched in 2016, has revolutionized the way Indians transfer money, offering instant, secure, and hassle-free transactions. Its popularity has been driven by increasing smartphone penetration, supportive government policies, and the integration of UPI with a wide range of banking and fintech apps.
Despite the digital surge, cash remains a significant part of India’s payment landscape. Industry experts note that while digital payment volumes are breaking new records, cash usage continues to thrive, especially in rural and semi-urban areas where digital infrastructure is still catching up. However, the sustained growth in UPI transactions signals a gradual but steady shift towards a less-cash economy.
The government and the Reserve Bank of India have been actively promoting digital payments through incentives, awareness campaigns, and regulatory support. The NPCI’s efforts to enhance UPI’s security and user experience have also contributed to its success.
