IPO-bound PhonePe, Google Pay maintain UPI ecosystem dominance in May

Digital funds majors PhonePe and Google Pay continued to dominate the Unified Payments Interface (UPI) ecosystem in Might, holding vital market shares when it comes to each volumes and worth, in accordance with knowledge from the Nationwide Funds Company of India (NPCI).

On its technique to itemizing on the Indian exchanges, PhonePe cornered half the UPI market final month. The fintech noticed Rs 12.56 lakh crore change arms in 8.6 billion transactions, accounting for 50% and 47% of the general UPI worth and quantity throughout the interval.

Google Pay logged over 6.7 billion transactions price Rs 8.85 lakh crore because the second-largest UPI platform in Might. The UPI platform dealt with 37% of the amount and over 35% of the worth of your entire ecosystem final month.

One97 Communications-run Paytm was a distant third with 1.27 billion UPI transactions price Rs 1.38 lakh crore, accounting for 7% quantity and 5.55% worth.

Sachin Bansal-owned Navi and Flipkart’s super.money emerged because the fourth and fifth largest UPI apps after Paytm.

Main UPI app PhonePe will get 95% of its income from digital funds, and UPI funds are a core facet of that enterprise, ET reported on Might 19. In the meantime, service provider funds firm Pine Labs, which is ready to file its draft IPO papers this month, will get a big share of funds through UPI. UPI accounts for a big chunk of enterprise for Razorpay too, which can also be planning to go public by 2026.

UPI processed 18.68 billion transactions in Might, rising 4.4% in a rebound from a decline in April, in accordance with knowledge launched by the NPCI. By worth, transactions through UPI totalled Rs 25.14 lakh crore final month, up from Rs 23.95 lakh crore in April.UPI has grown quickly since its launch in 2016. Nonetheless, the platform’s breakneck progress has began to sluggish because it approaches saturation, ET reported on April 7.

UPI monetisation hiccups

UPI platforms had their hopes dashed after the Ministry of Finance denied studies of reinstating the service provider low cost price (MDR) on transactions by way of them, hitting shares of listed cost companies. Paytm shares closed 1.46% decrease at Rs 882.10 per share, whereas Mobikwik shares dropped 2.85% to Rs 266.35 per share.

ET reported on June 13 that cost companies are going to see a disruption of their potential monetisation plans, with the federal government clarifying that it isn’t bringing again MDR.