India's UPI set a new record in May by processing 14.04 billion transactions worth Rs 20.45 lakh crore

According to data from the National Payments Corporation of India (NPCI), India's Unified Payments Interface (UPI) hit a new milestone in May by completing 14.04 billion transactions worth Rs 20.45 lakh crore, or Rs 20.45 trillion. May now stands as the strongest month for both volume and value since UPI started operating in April 2016, with a 5% increase in transaction volume and a 4% increase in value over April. May data indicates a 39% rise in value and a 49% increase in volume over the same month the previous year.

UPI's reach is being actively expanded both domestically and globally by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). With aspirations to reach 20 countries by FY29, UPI services are presently offered in several countries, including Singapore, Malaysia, the United Arab Emirates, France, Nepal, the United Kingdom, Mauritius, and Sri Lanka. 

In addition, in FY24, UPI was used for almost four of every five digital payments made in India. Notably, the RBI has been in communication with important players to talk about plans for growing the UPI network and adding additional users to the online payment system.

In the UPI ecosystem as of April, PhonePe has the most market share at 48.87%, followed by Google Pay at 37.5% and Paytm at 8.3%. PhonePe accounted for around 51% of transaction value, followed by Google Pay at 35% and Paytm at 5%.

Big participants in the market, such as Adani Group and Reliance Group, also have plans to get into the UPI and digital banking arena. Adani Group has launched a new app called JioFinance and is applying for a licence to operate on UPI and Jio Financial.