India’s most widely used digital payment platform, the Unified Payments Interface (UPI), saw a drop in total transaction value in June 2025, even as the number of transactions continued to rise. According to fresh data released by the National Payments Corporation of India (NPCI), UPI processed 675 crore transactions in June, marginally higher than the 673 crore recorded in May 2025.
Despite the uptick in volume, the total value of transactions fell sharply from ₹25.14 lakh crore in May to ₹24.03 lakh crore in June 2025, indicating a month-on-month decline of more than ₹1.10 lakh crore. The average transaction value also dropped from ₹18,677.46 in May to ₹18,395.01 in June, suggesting a rise in low-ticket transactions across the platform.
Industry analysts interpret the decline as a temporary slowdown in high-value business or merchant payments, even as everyday UPI use cases like peer-to-peer transfers, utility bill payments, and retail QR transactions continue to rise. The slight increase in transaction count suggests that UPI’s penetration at the consumer level remains strong.
UPI remains at the heart of India’s digital payment infrastructure, processing billions of transactions each month. With the introduction of new features like UPI Lite, Credit on UPI, and international UPI launches in countries such as Singapore and UAE, the platform is set for further expansion in FY 2025–26.
The June 2025 dip comes after several months of record-breaking UPI performance. However, experts believe that structural growth drivers—such as merchant digitization, government-backed fintech initiatives, and growing smartphone adoption—will continue to push UPI transaction volumes and values upward over the long term.
