Data released by the National Payments Corporation of India (NPCI) highlights that fintech platform Paytm’s total UPI transaction in May was 8.1 per cent. This was a reduction from the January transaction of 13 per cent.
On the other hand, digital payments platform PhonePe has maintained the top position with more than 48 per cent market share. It is followed by Google Pay, which has a 37 per cent market share, while Paytm has an 8 per cent market share.
Interestingly, a record 14.04 billion transactions were processed on the UPI network in May. In terms of value, May's UPI transactions totaled Rs 20.45 lakh crore, up from Rs 19.64 lakh crore in April. As per the NPCI, “Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features.”
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Ever since the central bank imposed restrictions on Paytm Payments Bank Limited, there has been a dip in its UPI transactions. In March of this year, the fintech platform was finally given a third-party aggregator license by the NPCI. Axis Bank, HDFC Bank, SBI, and Yes Bank are the four banks that were roped in to act as payment service provider banks.
In a stock exchange filing, the company said, “Following NPCI's approval on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.”
With Paytm re-starting its cashback feature, it's expected that its June share will increase. Except for Cred, none of the other apps (PhonePe, Paytm) provide any cashback.
