The latest data from the National Payments Corporation Of India (NPCI) for the month of July shows that Walmart-backed PhonePe saw a drop in its share of bound together payment interface (UPI) customer transactions in value and volume marginally month on month. Nonetheless, PhonePe continues to lead the market with 47.61% of market share by value and 46.9% by volume of transactions.
PhonePe prepared customer transactions worth INR 2.88 Lakh Cr during the month. This is marginally lower than the 47.73% transaction value share and 47% volume market reported by PhonePe in June.
Google Pay followed with 38% share by value and 35.2% share by volume with INR 2.3 Lakh Cr worth of customer transactions prepared during the month. In June it had reported 37.8% market share by value and 35.3% share by volume. Note that NPCI requires the outsider apps to implement a 30% share by volume by January 2023.
In a distant third place, Paytm Payments Bank commanded 7.6% market share by value and 12.2% share by volume, which is marginally higher than its June numbers.
During July, the NPCI timed a record 3.24 UPI Bn transactions by volume, up 15.7% month-on-month. It also reported transactions worth INR 6.06 Lakh Cr up 10.8% month-on-month.
Interestingly, IPO-bound Paytm saw its transaction volumes become 18% during the month, faster than Google Pay and PhonePe at 15% each. Kunal Shah-drove CRED saw a 23% development in transaction volumes, the most noteworthy among the top UPI apps. CRED commands a 1.34% market share by value of UPI transactions.
Launched in 2016, UPI transactions volume saw the main massive plunge in April 2020, after falling underneath the 1 Bn mark to 990 Mn, while the value of transactions dropped to INR 1.51 Lakh Cr. This fall was in the wake of the Covid-induced lockdown and restrictions that shut down all major services including traveling, dining out, e-commerce, and offline transactions.
After recovering post-May 2020, UPI crossed the 2 Bn transaction mark in October 2020. In March 2021, UPI had reported its best-at-any point figures with 2.73 Bn transactions amounting to INR 5.04 Lakh Cr. The lockdowns forced during the second wave from April 2021 seriously impacted payments. In any case, with the economy reopening since June, UPI transactions have gone through the roof crossing the 3 Bn transaction milestone in July.