The percentage of total transactions handled through India’s Unified Payments Interface (UPI) declined slightly in June for Google Pay, a subsidiary of Alphabet Inc., and PhonePe, a division of Walmart Inc. The National Payments Corporation of India (NPCI) reported that while Google Pay’s market share decreased to 36.76% from 37.18% in May, PhonePe’s fell to 48.37%.
Emergence Of New Entities in the UPI Market
New firms have entered the UPI ecosystem, upending PhonePe and Google Pay’s hegemony, which together account for more than 80% of the industry. The Indian market for digital payments is changing as a result of this flood of competitors.
- Apps from Axis Bank Ltd.: In June, 75 million UPI transactions were made on Axis Bank’s apps, a 17% increase.
- Navi App: In just one month, 35.7 million transactions were processed through the Navi app, a 20% increase.
- Super.Money from Flipkart: PhonePe’s sibling firm, Flipkart, is an Indian e-commerce company that recently introduced its super.money UPI payments service.
- JioFinancial Services: With its JioFinance app, Mukesh Ambani’s Jio Financial Services joined the UPI market to take advantage of India’s expanding fintech sector.
Volume of UPI Transactions
13.88 billion transactions were processed on the UPI network in June, a 1% decrease from the same month the last month. New entrants are gradually boosting their financial transaction volumes despite this minor average decline, suggesting a change in consumer preferences and the dynamics of the market.
Paytm Holds Steady At 8% Market Share Despite Regulatory Setbacks
In June, Paytm maintained the same 8% market share as the previous month in spite of regulatory obstacles. Paytm experienced a major regulatory setback earlier this year. The Reserve Bank of India demanded the nearly complete shutdown of its banking affiliate. As a result, the company’s net loss for the fiscal first quarter ended in June more than doubled to 8.39 billion rupees ($100 million).
In A Nutshell
New entrants are slowly chipping away at the market shares of long-standing strongholds like PhonePe and Google Pay, changing the UPI payments landscape in India. Consumer services will be enhanced through innovations as a result of increased competition brought about by these new competitors. To keep their lead in this quickly evolving ecosystem, established businesses will need to think ahead and act creatively.
Follow Us: Facebook | Instagram | X |
Youtube | Pinterest | Google News |
Entertales is on YouTube; click here to subscribe for the latest videos and updates.
 has introduced a new feature called 'UPI Circle.' Everything about this new feature.){kind=link}