PhonePe's UPI share expands, Paytm sees marginal rise in txn volume in May

Fintech major PhonePe has continued to expand its market share on the Unified Payments Interface (UPI), with the company cornering about 49.2 per cent share of the UPI pie in May, according to data from the National Payments Corporation of India (NPCI).

The Bengaluru-based digital payments and financial services company has maintained its streak of growth on UPI with its share increasing from 47.35 per cent in February this year.

The firm processed 6.83 billion transactions last month amounting to Rs 10.33 trillion.

Digital payments platform Google Pay and fintech firm Paytm are the second and third largest, with the companies having a 37.5 per cent and 8.21 per cent UPI share respectively.

Cumulatively, NPCI has recorded about 13.88 billion transactions on UPI.

Google Pay processed 5.21 billion transactions amounting to Rs 7.23 trillion in May.

Meanwhile, Paytm recorded 1.14 billion transactions with the cumulative value of transactions pegged at Rs 1.24 trillion.

Paytm has seen a marginal increase in its UPI transaction volume compared to April when the firm had processed about 1.11 billion transactions.

Its share has come down from 10.84 per cent, 9.13 per cent, and 8.39 per cent in February, March, and April respectively.

PhonePe and Google Pay have seen their share of UPI transactions inch up after the Reserve Bank of India’s (RBI) action on Paytm’s associate entity Paytm Payments Bank.

In April, NPCI allowed Paytm to start migration of users to new payment service provider (PSP) bank handles.

These four banks — State Bank of India (SBI), Axis Bank, HDFC Bank, and YES Bank — now act as PSPs to Paytm.