InvestorQ : How have the UPI transactions picked up in India and who are the largest players in India now?
Archita Jajjoo made post

How have the UPI transactions picked up in India and who are the largest players in India now?

Niti Shenoi answered.
3 years ago

The growth of Unified Payments Interface or UPI transactions in India has been phenomenal hitting 2.2 billion transactions in the month of Nov-20. This simple method of transferring money is dominated by names like Google Pay, Phone Pe, Paytm and Amazon Pay.

In terms of number of transactions, Google Pay leads the way recording 960 million transactions in Nov-20 giving it a market share of 43.4% of UPI market. Google Pay also saw an increase of 100 million transactions on its platform in November over October. Phone Pay was close behind with 858 million transactions and market share of 39%.

The pioneer in UPI transactions, Paytm, was a distant third with 260 million transactions and 11.7% market share. Amazon Pay recorded 37.15 million transactions in Nov-20. The big-3 consisting of Google Pay, Phone Pay and Paytm corner 94% of the UPI market in India.

However, the leadership changes if one looks at the value of UPI transactions as Phone Pe emerges on top with Nov-20 transaction value of Rs.175,000 crore followed closely by Google Pay at Rs.161,000 crore.

The UPI market is dominated by peer-to-peer or P2P payments accounting for 60% of the overall transactions with the peer-to-merchant or P2M transactions accounting for the balance 40% as of Nov-20.

Recently the nodal UPI regulatory body NPCI had stirred up a controversy proposing a 30% cap on transaction value per player effective from 2021. Although the existing players will have 2 years to adhere to this rule, Google and Phone Pe have come out strongly against such a move. It would clearly be an attempt to help Paytm and Amazon at their cost.