Can POP’s UPI+Commerce Playbook Dim CRED & Paytm’s Dominance In The UPI-verse?

Can POP’s UPI+Commerce Playbook Dim CRED & Paytm’s Dominance In The UPI-verse?

SUMMARY

Founded in 2023 by a former Flipkart employee Bhargav Errangi, POP is a Bengaluru-based fintech startup that is obsessed with outdoing Paytm to take the third port in the UPI-verse

POP enhances shopping and payments by combining UPI transactions with its unique rewards programme, POPcoins, just like CRED Coins

The company has raised more than $5 Mn and counts IndiaQuotient as its key investor. The startup has partnered with Yes Bank and Juspay to develop its UPI stack

Driven by the country’s technological prowess, digitisation efforts, a supportive regulatory regime, and the launch of the Unified Payments Interface (UPI) in 2016, India’s digital payment ecosystem has grown unhinged.Within just six months, the founder claims to have captured 0.2% of the market share and is on track to target 10% with its distinctive offering.“New-generation commerce was taking shape, and I wanted to create a lifestyle destination that brought customers together around shared interests — whether in commerce, entertainment, or offline events. However, building a B2C company in India before 2023-2024 was still expensive,” he explained.“To build a strong, scalable customer network with repeat engagement, we needed a daily activity that would drive them to open the app. That’s when we realised UPI could be that large phenomenon, as it is fast, efficient and secure,” the founder of the fintech startup said.POP’s revenue model is built around three key channels. First is the commerce revenue model, where POP earns a commission (usually around 20%) on products sold through its platform. Second, the platform earns from credit card transactions through the Merchant Discount Rate (MDR). “While Google Pay and PhonePe dominate the top spots, there’s still room for new players. Paytm, for example, holds just 10% of the market share, and we’ve already captured 0.2%. Our goal is to grow steadily by introducing more products, features, and engagement tools. By mid-2025, we aim to be among the top 10 players in the UPI space,” the founder said.In the short term, POP aims to reach 100 Mn transactions per month. Additionally, the company is targeting to onboard 1 Lakh active POP credit card users within the next four months.“Since money is involved, building trust is crucial. The startup is overcoming this by offering more value than existing players,” he added.

Launched by erstwhile RBI governor Raghuram G Rajan, UPI was first piloted in Mumbai with 21 member banks. The tech stack was introduced to address the challenges of traditional banking by creating a seamless platform that could allow fund transfers through mobile devices. 

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