Paytm’s share of the unified payments interface (UPI) market in India fell for a fourth straight month as the fintech pioneer struggles to recover from a regulatory setback. 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.
The company was rocked in January when the Reserve Bank of India ordered Paytm Payments Bank Ltd (PPBL)., a banking affiliate, to wind down operations. Its shares have fallen about 55 per cent since then.
The banking affiliate known as PPBL isn’t controlled by Paytm but is part of founder and Chief Executive Officer Vijay Shekhar Sharma’s fintech empire.
Operated by state-backed NPCI, UPI is a system that allows users to make instant money transfers by linking banks with fintech apps such as Paytm, PhonePe and Google Pay. The UPI network processed a record 14.04 billion transactions in May, up 5.5 per cent month-on-month.
Walmart Inc.-owned PhonePe maintained its dominant position in the market with a 49 per cent share in May, while Alphabet’s Google Pay boasted a 37 per cent share. Since the RBI order, Sharma has moved to steady the ship through new partnerships with some of India’s top lenders including Axis Bank Ltd., HDFC Bank Ltd. and State Bank of India Ltd.
The alliances will help Paytm with instant money transfers that used to be handled by its banking affiliate. The company didn’t respond to a request for comment from Bloomberg News. “We expect near-term financial impact to our revenue and profitability, due to disruptions faced in our business in Q4,” Sharma said in Paytm’s latest earnings filing.
FAQs
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.
What is the market share cap of UPI? ›
The 30% market share cap in the UPI segment was considered improbable with only a few months left until the deadline. Newcomers revised their plans as PhonePe and Google Pay retained dominance. The government had not yet provided an official stance to the NPCI on this matter.
What is the market share of UPI in 2024? ›
Digital payments platform PhonePe has continued to be the number one player in the unified payments interface (UPI) ecosystem with a market share of close to 49% in April 2024 across P2M (person to merchant) and P2P (person to person) transactions.
What is the market share of Google Pay in India? ›
In the fourth quarter of 2023, PhonePe held 46 percent share of unified payments interfaces (UPI) usage in India, followed by Google Pay with 36 percent.
How did PhonePe overtake 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.
Which is bigger, Paytm or PhonePe? ›
India, August 1st, 2018: PhonePe, India's fastest growing digital payments platform today announced that it has emerged as the single largest player on the UPI network, ahead of other payment apps like Paytm and Tez.
Which is the largest UPI in world? ›
With UPI, India maintains its position as the global leader in instant payments, accounting for 46% of all global instant payment transactions in 2022.
Which UPI has highest limit? ›
Regular UPI transactions have a maximum daily limit of ₹ 1 Lakh. UPI withdrawals from ATMs using UPI apps are limited to ₹ 10,000 per day. Bank UPI apps allow a total of 20 UPI transactions each day. Third-party UPI apps permit a maximum of 10 transactions per day.
Is UPI in share market? ›
The Unified Payments Interface (UPI) stock market in India refers to the trading of stocks and shares within the Indian financial ecosystem that utilizes the UPI transaction system.
What is the UPI in 2024? ›
Starting September 16, 2024, individuals will be able to use the Unified Payments Interface (UPI) to pay taxes up to Rs 5 lakh per transaction. This follows the NPCI directive to raise the UPI transaction limit specifically for tax payments.
Unified Payments Interface (UPI) which had crossed the 11 billion mark in October with 11.41 billion transactions, 12 billion mark in December with 12.02 billion transactions, 13 billion mark in March 2024 recording 13.44 billion transactions and 14 billion mark in May with 14.04 billion transactions, has witnessed a ...
What is the growth rate of UPI in India? ›
Synopsis. India's digital payments industry is booming, with transaction volumes growing by 42% YoY in FY 2023-24. A PwC report projects a threefold increase in transaction volumes by FY 2028-29. UPI leads this growth, accounting for over 75% of transactions and expected to reach 439 billion transactions by FY 2028-29.
What is the share of PayTM in UPI? ›
Showing signs of recovery, Paytm's QR-based payments, and Soundbox, have retained their market share for two consecutive months in Unified Payments Interface (UPI) ecosystem despite facing restrictions on onboarding new users. Paytm secured over 8% of the overall UPI transaction market in both May and June 2024.
Which UPI is most used in India? ›
1. PhonePe. PhonePe is amongst the widely used UPI apps in the country that is available in eleven Indian languages making it highly accessible for people from different regions. The UPI app performs all the tasks of normal UPI apps and has an additional benefit.
What is the market share limit for UPI? ›
The National Payments Corporation of India (NPCI), the quasi-regulator, will extend by as much as two years a year-end deadline to cap at 30% the market share of any company processing payments via the Unified Payment Interface (UPI), the sources with direct knowledge of the matter told Reuters.
Which is best UPI or Paytm? ›
Additionally, Paytm makes UPI payments incredibly convenient. Users can easily make payments by scanning QR codes or entering mobile numbers, ensuring a seamless and hassle-free experience. This simplicity is a key factor in making Paytm the preferred choice for many users.
What is the share of Paytm in digital transactions? ›
India-based Paytm's share of the country's Unified Payments Interface (UPI) continues to slip. The FinTech made up 8.1% of total UPI transactions last month, down from 13% in January, the National Payments Corporation of India said in data released Thursday (June 6).
What are the top UPI stocks? ›
UPI Stocks in India. Stocks of companies providing UPI interface to the customers, such as Paytm, can be termed UPI stocks. The three popular players in the UPI and digital wallets domain are PhonePe, Paytm, BHIM and Mobikwik. Out of these, Paytm launched its IPO in November 2021.
