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UPI Transactions See Slight Dip to 18.40 Billion in June; Year-on-Year Growth Remains Strong

• ByStartupStory     |    July 2, 2025

India’s Unified Payments Interface (UPI) recorded 18.40 billion transactions in June 2025, marking a slight dip from the all-time high of 18.68 billion in May. Despite the month-on-month decline, the volume still reflects a 32% year-on-year increase, signaling sustained growth in the country’s digital payment adoption.

According to data released by the National Payments Corporation of India (NPCI), the total transaction value for June stood at INR 24.04 lakh crore, down 4.4% from INR 25.14 lakh crore in May. However, the average daily transaction volume saw a marginal uptick, rising from 602 million in May to 613 million in June, while the average daily transaction value reached INR 80,131 crore.

Strengthening the UPI Ecosystem

India continues to dominate the global digital payment space, accounting for 48.5% of all real-time digital payments worldwide, as highlighted by Finance Minister Nirmala Sitharaman at the Digital Payments Award 2025. She also noted that over 35 crore users are now part of the UPI ecosystem.

“UPI is now accepted at select merchant outlets in seven countries including Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE,” she added, underlining the global reach of India’s digital payment infrastructure.

Efficiency Reforms Underway

In an effort to boost transaction efficiency, the NPCI recently issued new mandates requiring banks and payment service providers (PSPs) to reduce the response time of UPI API calls to as low as 10 seconds for specific transaction types. These changes are aimed at improving transaction speed and reliability for consumers and merchants alike.

Meanwhile, a report speculated that the government was considering imposing a merchant discount rate (MDR) on UPI transactions above INR 3,000, which drew concerns about potential cost burdens on businesses. However, the finance ministry has refuted such claims, labeling them “speculative, baseless, and misleading.”

Industry’s Call for MDR Reconsideration
Earlier this year, the Payments Council of India (PCI) submitted a request to Prime Minister Narendra Modi to revisit the zero MDR policy that has been in place since 2020. The MDR is a fee charged to merchants by banks or payment providers for processing digital payments. The government had eliminated this fee to boost adoption, but industry players argue that reinstating a fair MDR could make the digital payment ecosystem more sustainable for service providers.

Looking Ahead

Despite a short-term dip in monthly transaction value and volume, India’s UPI framework continues to be a global benchmark in real-time digital payments. As newer reforms and integrations come into play, the country remains focused on making digital payments faster, more reliable, and universally accessible — both at home and abroad.

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