UPI in May: PhonePe maintains domination, Paytm sees marginal growth (2024)

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UPI in May: PhonePe maintains domination, Paytm sees marginal growth? ›

UPI in May: PhonePe maintains domination, Paytm sees marginal growth. Digital payments platform PhonePe has maintained its top position in the Unified Payments Interface (UPI) ecosystem with a market share of more than 48% in May 2024.

Presently, Walmart-backed PhonePe and Google Pay dominate the market, processing approximately 85 percent of UPI transactions in the country. In contrast, BHIM's market share remains marginal, handling just 22.72 million transactions in June, a mere 0.16 percent of total UPI volumes.

PhonePe includes a “Switch” feature, allowing users to access various apps and services within the PhonePe app itself. This is a convenient way to integrate multiple services in one place. Paytm, on the other hand, offers a similar experience but with more of a focus on its e-commerce platform.

Success of PhonePe

PhonePe has now become a well-known brand in the industry of digital payments. PhonePe's status as a fintech industry leader was cemented when it developed and extended its services. Millions of users in India appreciated the platform's commitment to user empowerment, data privacy, and simplicity.

With UPI, India maintains its position as the global leader in instant payments, accounting for 46% of all global instant payment transactions in 2022.

By linking multiple bank accounts to a single mobile application, UPI has simplified payments and brought the convenience of digital transactions to the masses. According to NPCI, there are over 300 million UPI users in India today transacting on applications like Google Pay, PhonePe, and Paytm.

As is clear from the above discussion, Phone Pe stands out in terms of its technological prowess, it is faster and more accurate than its competitors. It has an edge in terms of the overall user experience, the user journey is more delightful, smooth and hassle and hick-up free than that of Paytm and Google Pay.

PhonePe currently has a 48.3% share of UPI retail payments, while Google Pay has 37.6%. Paytm has a share of about 9%. No other company even has a full 1% share of the UPI market. This market dynamic is not new.

Like GPay, you dont have the option for secure login using PIN or password. Sometimes your transaction gets stuck in between for long duration, so that's a technical bug with this app. if you are booking your travel tickets with PhonePe and in case you cancelled it. Then you wont get any refunds for that.

By integrating with UPI, PhonePe offered users a seamless and secure way to make transactions directly from their bank accounts. The app gained popularity for its user-friendly interface, fast processing times, and convenient features. It quickly became a trusted name in the digital payment space.

Who owns PhonePe in India? ›

History. PhonePe was incorporated in December 2015. In April 2016, the company was acquired by Flipkart and as part of the acquisition, the FxMart license was transferred to PhonePe and rebranded as the PhonePe wallet.

Pricing: Both PhonePe and Google Pay do not charge for most transactions. Ultimately, the best digital wallet for anyone will depend on your individual needs and preferences. If you are looking for a wallet with a wide range of features and a strong brand recognition, then PhonePe or Google Pay are good options.

How do UPI Mobile payments firms make money? Commission income: All of these businesses have agreements with brands for a brand placement fee and with providers of everyday necessities like cellphone recharge, bill payment, DTH activation, etc. for commissions on spending.

UPI stands out for its ease of use and instant transfers. It allows linking multiple bank accounts in one app, facilitates round-the-clock transactions, and doesn't involve sharing sensitive information for each transaction.

1. Phonepe. PhonePe is a popular UPI app that allows users to make payments, recharge phones, pay utility bills, and more. It also provides various offers, rewards, and cashback to its customers.

“It (BHIM) lost out to Google Pay, PhonePe, and Paytm as (the) three combined now have a 98% market share and BHIM has a negligible market share,” said Ranadurjay Talukdar, partner and payments sector leader, Ernst & Young India.

Indians can now use the Unified Payments Interface (UPI) to make payments in seven countries. Following its launch in Sri Lanka and Mauritius, UPI payments are accepted in France, UAE, Singapore, Bhutan, and Nepal.

Paytm accounted for 8.1 per cent of total UPI transactions in May, down from 13 per cent in January, according to data released by the National Payments Corporation of India.