PhonePe retains top position on UPI in June, Paytm's market share slips

Digital payments platform PhonePe continued its dominance in the Unified Payments Interface (UPI) ecosystem in June, cornering around 48.34 per cent market share.

Nearly one out of two transactions on the National Payments Corporation of India (NPCI)-run UPI are processed on fintech major PhonePe’s platform.

The Bengaluru-based fintech unicorn processed 6.71 billion UPI transactions in June, amounting to a cumulative value of Rs 10.09 trillion, according to NPCI data.

The company was the largest on the UPI In May, securing about 49.2 per cent share. 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.

 

Google Pay continued to be the second largest player on the UPI ecosystem in June, with the company holding 36.74 per cent share.

Paytm, the third largest player in the digital payments ecosystem, has continued to see decline in UPI transaction volumes with its market share down to 7.93 per cent in June from 12.79 per cent in January.

The rest of the smaller players hold less than one per cent each on the UPI ecosystem. 

A concentration of volumes with the top two players, PhonePe and Google Pay, has previously raised duopoly concerns and challenges around concentration risk of these platforms.

As of June, the two firms hold 85 per cent share of the total UPI transactions.

Last month, the NPCI recorded 13.88 billion transactions on its platform.