In the ever-evolving digital payments ecosystem of India, May 2025 proved to be a milestone month as PhonePe and Google Pay reached record-breaking heights in Unified Payments Interface (UPI) transactions. The two digital giants not only held their positions as the top players but also marked their highest-ever transaction volumes since UPI’s inception. According to fresh data released by the National Payments Corporation of India (NPCI), the trend towards cashless transactions is accelerating faster than ever, with PhonePe and Google Pay leading the way.
PhonePe Leads with Massive Transaction Volume and Value
PhonePe continued to reign supreme in the UPI landscape by clocking a staggering 8.68 billion transactions in May alone. This monumental achievement gave PhonePe a commanding 46.47% share of the total UPI transaction volume. But that’s not all—the app also dominated in terms of transaction value, processing an impressive ₹12.56 lakh crore. With this, it captured 49.97% of the total transaction value share, making it the undisputed leader in both metrics. These numbers not only reflect the scale of PhonePe’s operations but also highlight its deep penetration in the Indian digital payments market.
Google Pay Achieves Its Highest-Ever Numbers
Google Pay followed closely behind PhonePe, reaching new heights in May 2025. It processed 6.74 billion transactions amounting to ₹8.85 lakh crore. This translates to a 36.09% share in transaction volume and 35.20% in transaction value. These figures represent the highest-ever numbers for Google Pay, surpassing its previous peak in March 2025. The continued growth of Google Pay reinforces the trust and ease it offers to millions of Indian users, many of whom use the platform for everything from daily grocery shopping to rent payments.
Over 80% of UPI Transactions Handled by Two Giants
Together, PhonePe and Google Pay processed over 80% of all customer-initiated UPI transactions in May 2025. Their combined dominance illustrates how deeply integrated these two apps have become in the lives of Indian consumers. Whether it’s peer-to-peer transfers or payments at local kirana stores, the overwhelming majority are now being handled through these two platforms, showing the shift towards user-friendly and reliable digital payment systems.
UPI Sees Record Growth in May 2025
May 2025 turned out to be a landmark month for UPI as a whole. The system saw a total of 18.67 billion customer-initiated transactions, amounting to a mind-boggling ₹25.14 lakh crore. Of these, 6.82 billion transactions worth ₹18.17 lakh crore were peer-to-peer (P2P), while the remaining 11.85 billion transactions worth ₹6.96 lakh crore were peer-to-merchant (P2M). These numbers underline the increasing trust that consumers and merchants alike have in UPI as a fast, secure, and free payment method.
Paytm Maintains Third Spot with Small-Ticket Transactions
While PhonePe and Google Pay dominate the top spots, Paytm managed to maintain its third-place position. The platform processed 1.27 billion transactions worth ₹1.38 lakh crore in May. Despite its 6.84% share in transaction volume, Paytm only held a 5.49% share in transaction value, suggesting that most of its transactions are of low-ticket size. This aligns with Paytm’s stronghold in daily utility payments, such as mobile recharges, DTH, and bill payments, along with offline purchases at small retail outlets.
CRED Shows Strength in High-Value Transactions
CRED, though accounting for a smaller volume of transactions, stood out for its high transaction values. The app handled 141.95 million transactions in May, translating to a 0.76% volume share. However, the total value of these transactions was a significant ₹55,242.72 crore, capturing 2.20% of the total transaction value. This reveals that CRED continues to cater to a niche but high-value segment, mostly comprising credit card payments and premium users who favor the platform for its rewards and curated offers.
Super.money Maintains Its Lead Over CRED
Flipkart’s Super.money app continued its strong performance by staying ahead of CRED in transaction volume. With 203 million transactions in May 2025, Super.money solidified its position as the fifth-largest UPI app. This momentum began in February 2025 when it first overtook CRED, and the app has successfully retained that lead. Super.money’s rise is largely attributed to Flipkart’s vast user base and its integration within the shopping experience, making payments quick and seamless.
Other Emerging Players Make an Impact
Several other apps are making noteworthy contributions to India’s UPI journey. Navi recorded 386.21 million transactions, while Axis Bank’s suite of UPI apps collectively handled 96.92 million B2C transactions. Meanwhile, Fampay by Trio reported 110.38 million transactions, Amazon Pay processed 98.68 million, and WhatsApp Pay recorded 70.19 million transactions. These players may not yet challenge the top three, but their steady growth signals a diversifying digital payments space.
Jar Enters the UPI Market
Adding to the excitement, gold-saving platform Jar entered the UPI arena in May. Partnering with Unity Small Finance Bank as its Payment Service Provider, Jar’s new UPI service allows users to make regular payments directly from the app. This expansion aligns with a broader industry trend where platforms traditionally focused on savings or investing are now moving into everyday payment solutions.
Government Clarifies No MDR on UPI
In an important development for both consumers and businesses, the Finance Ministry recently clarified that there are no plans to impose Merchant Discount Rates (MDR) on UPI transactions. This announcement is a major relief for merchants and digital platforms that rely on fee-free transactions. Although some payment companies have been pushing for a monetization model, the government’s stance ensures that UPI remains a zero-cost platform for end-users, thereby supporting its widespread adoption.
May 2025 stands as a testament to the unprecedented growth of India’s digital economy. PhonePe and Google Pay have achieved record usage, while emerging platforms like Super.money and Jar are carving out their own space. As UPI continues to scale new heights, competition is heating up, and innovation in digital payments is accelerating. Consumers, meanwhile, benefit from a growing list of reliable and user-friendly options. One thing is clear: the future of payments in India is digital, inclusive, and thriving.
