Why did the average UPI transaction amount drop by almost 30% over four years?

Data from the NPCI reveals that the average value of UPI transactions has dipped by nearly 30% over the last four years. The typical transaction size decreased from approximately ₹1,804 in January 2022 to ₹1,273 by June 2026. This decline is attributed to the growing popularity of UPI among small-scale vendors and the rising frequency of small payments for daily purchases like snacks and tea.