UPI Sees Modest Decline in June After Record-High in May: PhonePe Maintains Dominance

After achieving a historic peak in May 2025, Unified Payments Interface (UPI) transactions experienced a slight decline in June in both transaction volume and value. As per the latest figures released by the National Payments Corporation of India (NPCI), the platform facilitated 18.40 billion transactions worth ₹24.04 lakh crore in June—down from 18.68 billion transactions worth ₹25.14 lakh crore in May.

Month-on-Month vs Year-on-Year Trends

The month-on-month (MoM) data shows a 1.5% dip in transaction volume and a 4.4% drop in transaction value. However, on a year-on-year (YoY) basis, UPI’s performance remains robust, registering a 32% growth in volume and a 20% increase in value compared to June 2024.

Despite the monthly dip, UPI’s average daily transaction count rose to 613 million in June, up from 602 million in May. On the other hand, the average daily transaction value fell slightly to ₹80,131 crore from ₹81,106 crore the previous month. The increase in daily averages can be partially attributed to June having fewer days than May.

New Players Entering the UPI Ecosystem

As of May data, PhonePe leads the UPI ecosystem, capturing 46.47% of total transaction volume, followed by Google Pay with 36.09%, and Paytm at 6.84%. These three continue to dominate the Indian digital payments landscape.

Emerging platforms such as Navi, Flipkart’s super.money, and Fampay by Trio are gradually gaining traction, contributing meaningfully to UPI’s growing ecosystem.

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UPI’s Global Footprint Expands

Beyond India, UPI is already operational in countries like Bhutan, Nepal, Mauritius, Sri Lanka, Singapore, France, Oman, and the UAE. Efforts are underway to expand into Qatar, Thailand, Malaysia, and other Southeast Asian markets. Additionally, countries such as the UK, Maldives, and Oman have shown interest or are in early stages of integration.

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