Unified Payments Interface (UPI), India’s instant payment system developed by NPCI, registers a 23 percent year-on-year growth in transaction amount in May 2025, reaching Rs 25.14 Lakh Crore. It translates into a 33 percent Y-o-Y growth in transaction count, reaching 18.68 billion in May 2025. This marks a major milestone in India’s journey with digital payments. 

As UPI makes significant strides in payments, it also debuts a seamless attitude in the Indian economy, a much-needed affair for continuous growth and innovation. Further, it also brings forth the extent of adoption that the technology enjoys amidst growing competition in India’s fintech ecosystem. 

Daily Transactions 

The technology witnessed an average daily transaction count of 602 million, with the average daily transaction amount valued at up to Rs 81,106 crores in May 2025. This is against the 596 million average daily transactions and Rs 79,831 crore average daily transaction amount of April 2025. 

This paints a clear picture of the amount as well as the number of times people utilize the innovative payment system these days. It eventually casts enough light on the extent of adoption, use, and reliability that the technology enjoys among the masses. 

The highest share of above Rs 2000

As per the data on the website of the NPCI, out of the total amount paid using UPI, 87 percent of the transactions consisted of a payment above Rs 2000. This tells us that UPI is not only facilitating typical small transactions but also facilitating large amounts for various purposes, posing a huge challenge for other mediums like cards and cash. 

P2P vs. P2M Payments 

P2P (peer-to-peer) transactions are payments between individuals, such as splitting bills or sending money to friends or family. P2M (peer-to-merchant) transactions involve payments to businesses, like retail purchases, utility bills, or service payments.

In total, Rs 2514297 of transaction amount moved through UPI; 72 percent of the amount went to P2P (peer-to-peer), while 28 percent went to P2M (peer-to-merchant). 

What makes it unique? 

UPI enables immediate money transfers via mobile devices, offering seamless access to funds around the clock—24/7, 365 days a year. With a single mobile application, users can manage and transact across multiple bank accounts effortlessly. The platform also ensures security through a streamlined single-click two-factor authentication process, combining convenience with robust protection.