Synopsis
Daily average transaction volumes rose to 748 million in May from 745 million in April, reflecting higher adoption of UPI for retail consumer payments.Listen to this article in summarized format
Daily average transaction volumes rose to 748 million in May from 745 million in April, reflecting higher adoption of UPI for retail consumer payments.
ET had reported on April 29 that in a recent meeting with NPCI, smaller third-party application providers (TPAP) were planning to seek growth restrictions on larger UPI apps. NPCI has been planning to introduce a 30% market cap on UPI TPAPs, but the logistical challenges of such a cap has resulted in multiple delays in implementation, with the deadline now moved to December.
Currently, PhonePe and Google Pay dominate UPI payments, commanding more than 80% of the overall market, with Paytm accounting for another 10%.
India's overall digital payments sector has seen growth moderate in recent months, with month-on-month transaction growth slowing.
While the growth trajectory of UPI continues to dominate headlines, a lot of its transactions are actually shifting from debit card swipes, resulting in net growth in transactions remaining tepid.
According to NPCI, NETC FASTag processed 375 million transactions worth Rs 7,308 crore in May 2026. While the transaction count declined 7% year-on-year, the total transaction value increased 3%, indicating higher average transaction values.
In comparison, April saw 358 million transactions worth Rs 7,025 crore, with average daily volumes of 11.94 million transactions and Rs 234 crore in transaction value.
