- Paytm did around 200 million transactions in May.
- PhonePe claimed to had done 300 million UPI transactions in July and the growth came on the back of its offline merchant base which has grown to 5 million.
Paytm saw a huge decline in Unified Payments Interface (UPI) transactions in July as the payments leader lost market shares to Google Pay and PhonePe.
Although, UPI transactions have jumped in last month emerging as the most preferred mode for small-value retail digital payments.
Paytm recorded less than 140 million transactions on UPI, a huge decline given its leadership position in Indian payment space. Google Pay and PhonePe clocked around 300 million transactions each last month.
Google Pay and PhonePe each have more than 35 percent share of total 822 million UPI transactions much more than 16 percent of Paytm.
Paytm did around 200 million transactions in May.
Paytm might be lagging behind in UPI transactions but it offers multiple transaction modes to its customers across mobile wallets and directly between its bank accounts because it is a licensed payments bank.
“We achieved over 600 million transactions in July, which includes payments through Paytm Wallet, Paytm UPI, cards and net banking. We are witnessing that the Paytm wallet is more preferred for offline payments than UPI,” said Deepak Abbot, senior vice-president at Paytm.“Paytm is accepted at over 13 million offline stores and our team is aiming to onboard another 12 million merchants by the end of this fiscal year.”
The top banks- Axis Bank, ICICI Bank, HDFC Bank and the State Bank of India- which partners Google Pay, along with Yes Bank, the settlement partner for PhonePe and Paytm account for almost 790 million UPI transactions. More than 143 banks are live on the payments network.
UPI is banking on the rapid adoption of third-party applications among customers hence causing the payments to remain concentrated among the top few banks of the nation.
PhonePe claimed to had done 300 million UPI transactions in July and the growth came on the back of its offline merchant base which has grown to 5 million.
Google is also expanding its base by offering bill payments across its platform.
The rapid growth of UPI usage is directly in terms of growth internet and smartphone users in India. These users are driven by ease of usage and simplicity. There is a clear shift in preference of a mode of payment which helps UPI grow at a rapid pace.
Growth of UPI has stagnated the growth of Mobile Wallets and a decline in their usage over the last few months.
With the simple methods and easy interface, UPI has made it to maximum customers and with growing smartphone and internet user base UPI will look for positive growth.