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UPI Transactions Had Massive Drop in June with 18.4 Bn
UPI transactions have increased in recent years since the advent of digitisation. It is the most used platform for any kind of transactions, whether receiving or sending money to others. But ever since the use of UPI to make payments has risen significantly, the use of cash has gone down.
Summary:
1. UPI transactions have experienced a significant drop in June, with a 4% decrease in transaction value from ₹25.14 lakh crore in May to ₹24.04 lakh crore.
2. Deepak Chand Thakur, CEO and Co-founder of NPST, believes that the next phase of growth will be driven by novel use cases like micro credit, B2B payments, IoT-enabled transactions, and expanding into global and rural markets.
3. The NPCI intends to expand UPI to more countries, including Qatar, Thailand, Malaysia, and other South-east Asian states.
Now, what if I tell you that UPI has recently witnessed a massive drop in digital payments and transactions?
Yes, it happened lately and came to light after the results revealed significant declines in June.
Curious to know the details and reasons behind this marginal drop, then let’s deep dive into this latest startup news.
After reaching a record high during May, Unified Payments Interface (UPI) transactions fell somewhat in the amount and value in June 2025. In June, transaction value fell 4% to ₹24.04 lakh crore from ₹25.14 lakh crore in May.
Despite the decline, UPI transactions in June increased by 32% year on year. Transaction value increased by 20% compared to June of last year.
The number of daily UPI transactions increased to 613 million in June from 602 million in May. The daily transaction value decreased significantly to ₹80,131 crore from ₹81,106 crore.
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According to Ramakrishnan Ramamurthy, Worldline’s Chief Delivery and Operations Officer – India, the steady rise in deliveries indicates a shift in consumer behaviour. “June’s UPI performance reflects India’s digital maturity…” The continuous year-on-year growth shows the increasing acceptance of compatible, low-cost, and secure digital payment options.”
Meaning of this decline in UPI Transactions
Deepak Chand Thakur, CEO and Co-founder of NPST, said, “While recent data shows a small reduction in growth, this reflects UPI reaching a critical scale rather than a slowdown in adoption.” According to this latest startup news, the next phase of growth will be driven by novel use cases like micro credit, B2B payments, IoT-enabled transactions, and expanding into global and rural markets.”
Immediate Payment Service (IMPS) transactions, on the other hand, fell 3% in volume and 5% in value month over month. In June, there were 448 million IMPS transactions totalling ₹6.06 lakh crore, compared to ₹6.41 lakh crore in May.
Compared to June 2024, the number of IMPS transactions declined 13%, while the value increased 5%.
“The digital payment ecosystem in India continues to surpass international standards,” stated Kunal Jhunjhunwala, the founder of AirPay payment services. June had an average of 648 million daily transactions, which exceeded even Visa’s global daily bandwidth.”
He added that as transaction volumes increase, refining system IDs and preserving user trust will become more essential. New entrants such as Navi, Flipkart’s super.money, and Fampay by Trio are also actively contributing to overall UPI volume.
Aside from India, UPI is currently available in Bhutan, Nepal, Mauritius, Sri Lanka, Singapore, France, Oman, and the UAE. According to media sources, the NPCI intends to expand UPI to more countries, including Qatar, Thailand, Malaysia, and other Southeast Asian states, while the UK, Oman, and the Maldives have expressed interest or are currently in the early phases of inclusion.
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