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PhonePe hits out at Paytm, says claims around UPI are "misleading"

Press Trust of India  |  New Delhi 

Flipkart's payments platform, today lashed out at rival alleging that the latter's claims about leadership in (UPI) transactions were "unidimensional and misleading".

In a blogpost, said while "seems to be leading the market" in terms of number of transactions, the average value of such transactions is much lower at Rs 40 compared to its own ATV (average transaction value) of Rs 1,800.

clarified that data around Paytm's ATV and Average Transactions per Customer (ATPC) was not available.

However, based on the 21 million money transfer transactions made by customers to PhonePe users, the Bengaluru-based company had found that 40,000 unique consumers had done over 500 transactions each in February bringing the average transaction for Paytm to less than Rs 40.

When contacted, a Paytm declined to comment.

Interestingly, Paytm had earlier this week issued a statement claiming leadership position on the UPI platform.

PhonePe alleged that Paytms transaction volumes are "clearly influenced by significant per-transaction cashback incentives that appeal to a very small population".

It further said that its calculations reflect that broad-based adoption of UPI has not happened on Paytm and that transaction numbers for customers do not reflect typical UPI use cases.

"For these combination of reasons, we believe that Paytms claim that they are the largest on UPI is both uni-dimensional and misleading," it said in the blog titled 'All that Glitters is not Gold'.

Paytm founder had recently alleged that payments body of (NPCI) had been arm-twisted by social media giant, to give preferential treatment to messaging app WhatsApp for the launch of payments based on UPI on the platform.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 21:15 IST