India’s mobile payments market has been rising step by step with the rising smartphone market since the since the introduction of Unified Payments Interface (UPI) in India that has been a revolution to the method of payments in Inda.
According to the latest update of UPI Statistics, it has recorded Rs. 2,18,391.60 crore in transactions over 155 active banks in India till May 2020.
Google Pay and Walmart-owned PhonePe have been the leader in transactions using the UPI platform in India with more than 75 million and 60 million users respectively made transactions using UPI in May 2020, while 30 million Paytm users made transactions using UPI as the mode of payments.
Google and PhonePe are still behind Paytm in the number of registered merchants but they are reaching closer with new merchants added to the service still, Google is maintaining its lead with the number of UPI transactions made in one of the most severe lockdowns in the world.
Paytm, India’s homegrown payment firm has been struggling to preserve its user base from the last two years that was once the dominant leader in mobile payments in India. Paytm has been able to collect massive funds for the company in last one year to increase the companies presence in the payments market with the largest number of registered merchants.
Paytm has been in the business for a long time offering almost every service on its mobile app which I call a Super App but since the massive increase of UPI based apps, Paytm lost its dominance in the market sticking to its mobile wallet system for a long time allowed Google and PhonePe to take more control in the market with UPI ecosystem.
Paytm can still bounce back but Facebook is another huge challenge for the company as WhatsApp Pay might make a nationwide entry in India soon which has the largest number of active users in India. Facebook has earlier invested $5.7 billion in India’s leading telecom operator Reliance Jio platforms.
Walmart’s PhonePe has also made it to the Super-App category with the addition of third-party services to the app and expanding its user base from individuals to merchants in the country thanks to the nod from Walmart to keep the app running smoothly since the acquisition of Walmart in 2018.
According to the reports from NPCI:
Google Pay facilitated 540 million transactions in May, up from 434 million in April and 515 million in March this year.
PhonePe made 460 million transactions in May, up from 368 million in April and 454 million in March this year.
While Paytm accounted for 120 million UPI transactions in May, 127 million in April, and 186 million in March this year.
Google Pay and PhonePe account for about 83% of all UPI transactions made in India last month but industry experts say that Paytm is a synonym of digital payments in India and it would be a mistake to count Paytm out of the business.