PhonePe has maintained its dominant position in the Unified Payments Interface (UPI) ecosystem, commanding a market share of over 48% in May 2024. UPI set a new milestone by processing over 14 billion transactions worth Rs 20.45 lakh crore (Rs 20.45 trillion), the highest since its inception in 2016.
According to the latest data from the National Payments Corporation of India (NPCI), PhonePe led the market with 6.8 billion transactions. Google Pay followed with 5.2 billion transactions, while Paytm processed 1.14 billion transactions.
In terms of transaction value, PhonePe handled Rs 10.33 lakh crore (Rs 10.33 trillion), Google Pay processed Rs 7.2 lakh crore (Rs 7.2 trillion), and Paytm accounted for Rs 1.24 lakh crore (Rs 1.24 trillion). This translates to market shares of 48.6% for PhonePe, 37% for Google Pay, and 8% for Paytm by volume. By value, PhonePe, Google Pay, and Paytm held market shares of 50.5%, 35%, and 6%, respectively.
The market share distribution remained almost unchanged from April. However, Paytm experienced a marginal increase in transactions in May, breaking a three-month decline seen in February, March, and April. This recovery is a positive indicator for Paytm, which faced restrictions imposed by the Reserve Bank of India earlier this year.
Interestingly, government-promoted BHIM has seen a continuous decline in recent months. In contrast, platforms like CRED, Amazon Pay, WhatsApp, and NAVI have surpassed BHIM in transaction volumes. Notably, Fampay recorded 50 million transactions in May, more than doubling BHIM’s figures.
In a significant development, NPCI is considering revising its decision to implement a 30% cap on the market share of UPI apps by the end of 2024. This potential policy change could significantly impact the transaction volumes of third-party apps like PhonePe and Google Pay.
As UPI continues to grow and evolve, the competitive landscape remains dynamic, with leading players striving to innovate and expand their reach in the burgeoning digital payments market in India.
