Paytm’s UPI Transactions Drop Further In March; PhonePe And Google Pay Log Gains

Fintech major Paytm’s Unified Payments Interface (UPI) transactions saw a marginal drop in March, as per a data by National Payments Corporation of India (NPCI).

The company processed around 1.2 Bn UPI transactions in March, a slight decline from 1.3 Bn transactions in February and 1.4 Bn in January.

However, its two larger peers, PhonePe and Google Pay, experienced an increase in transaction volume. 

In March, Google Pay processed 5 Bn transactions, marking a 6.3% increase from 4.7 Bn in February. Similarly, PhonePe recorded 6.5 Bn transactions in March, reflecting a 5.2% rise from 6 Bn in February.

Apart from the top three fintechs, no other player has managed to achieve significant scale on UPI. Cred ranks as the fourth largest UPI app, with 132 Mn transactions reported in March.

Paytm Payments Bank Limited (PPBL), ceased providing basic banking services in the middle of last month. Although Paytm has transferred its UPI payments to four major banks—Yes Bank, Axis Bank, HDFC Bank, and State Bank of India—it has been consistently losing market share in UPI.

Overall, UPI payments rose to 13.4 Bn in March compared to 12 Bn in February, per NPCI data.

Amidst Paytm’s slowdown, NPCI is closely monitoring the market share dynamics. There’s a regulatory requirement to cap any single payment application’s market share at 30% on UPI, slated for implementation by year-end.

Meanwhile, on Tuesday (April 9) Paytm said that foreign portfolio investors (FPIs) ramped up their shareholding in the company in the fourth quarter (Q4) of the financial year 2023-24 (FY24).

The development also comes at a time when the fintech startup announced the departure of Surinder Chawla as the CEO and MD of Paytm Payments Bank. As per the company, Chawla put down his papers on April 8 and will be relieved from his duties by June 26.