India’s Unified Payments Interface (UPI) ecosystem reached a new milestone in May, with total transaction volume rising to a record 23.2 billion transactions and transaction value touching Rs 29.90 lakh crore, according to data released by the National Payments Corporation of India (NPCI). The growth reflects continued momentum in both merchant and peer-to-peer digital payments across the country.

Key Highlights

• PhonePe processed 10.73 billion transactions, retaining its position as India’s largest UPI platform.
• UPI transaction value touched Rs 29.90 lakh crore, setting a new monthly record.

PhonePe Maintains Market Leadership

PhonePe remained the dominant player in India’s digital payments market after processing 10.73 billion UPI transactions during May. The platform accounted for 46.3% of total UPI transaction volume and 49.1% of transaction value, handling payments worth Rs 14.67 lakh crore.

Google Pay retained the second position with 7.60 billion transactions, capturing 32.8% market share by volume and 33.5% by value, with transactions worth Rs 10.03 lakh crore.

Paytm continued as the third-largest UPI application, recording 1.84 billion transactions during the month. The fintech company held 7.9% market share by volume and 6.7% by value.

Notably, PhonePe, Google Pay, and Paytm each recorded their highest-ever monthly transaction volumes as UPI adoption continued to expand across India.

Also Read: NPCI April UPI Data: PhonePe Leads Crossing 10 Bn Transactions Again

Emerging Players Continue to Gain Ground

Among emerging platforms, Navi crossed 824 million transactions, strengthening its presence in the UPI ecosystem. Flipkart-backed super.money processed 419 million transactions, while BHIM registered 227 million transactions.

Smaller but rapidly growing apps also expanded their user base. FamApp by Trio handled nearly 197 million transactions, while CRED processed 157 million transactions worth ₹61,002 crore. Despite relatively lower transaction volumes, CRED maintained a higher average transaction size, accounting for around 2% of total value share.

Meanwhile, WhatsApp Pay crossed the 150 million transaction mark in May. Axis Bank’s payment applications contributed around 134 million transactions across customer, business-to-consumer, and business-to-business payment categories.

Together, PhonePe and Google Pay accounted for nearly 79% of total UPI transaction volume and 82.6% of transaction value, highlighting their continued dominance in India's digital payments landscape.

Everyday Spending Drives UPI Growth

NPCI data showed that daily consumption categories remained the largest contributors to merchant-side UPI transactions. Groceries and supermarkets led the segment with 3.87 billion transactions, followed by fast-food restaurants with 1.50 billion transactions and restaurants with 1.29 billion transactions.

Telecom services, fuel stations, and digital gold purchases also witnessed strong activity. Digital gold transactions rose marginally to 249 million, while transaction value stood at Rs 2,451 crore, keeping the category among the top merchant segments.

Industry experts believe the continued growth of UPI is being driven by rising digital adoption, wider merchant acceptance, and increasing consumer preference for real-time, cashless payments across both urban and rural India. With transaction volumes and values hitting fresh highs, UPI continues to strengthen its position as the backbone of India’s digital economy.