After hitting the milestone of 1 billion monthly transactions last year, UPI has surpassed 2 billion transactions last month. This was exactly a year after hitting the previous milestone. Walmart’s PhonePe surpasses Google Pay in the number of UPI transactions handled.
UPI is a payments infrastructure built by India’s largest banks. After four years since its introduction, it has become the most popular digital payment method in India. It is all due to its open architecture that allows interoperability among all the cooperating payments apps. These apps which handle the UPI transactions include Walmart’s PhonePe, Google Pay, Paytm, and Amazon Pay.
BHIM UPI has managed to change the face of person-to-person and person-to-merchant money transfers in the past few years while making them safer and more secure. #BHIMUPI #UPIChalega #DigitalPayments @dilipasbe pic.twitter.com/INjptjBEf7
— BHIM (@NPCI_BHIM) November 1, 2020
Dilip Asbe, NPCI’s Chief Executive said that they, unlike China, have provided equal opportunities to both small and large domestic and foreign organizations. The 2.07 billion UPI transactions processed $51.9 billion in value in October this year. Last year in October, the value processed was $25.7 billion. Asbe said that NPCI also plans to expand UPI outside of India, as per a previous statement.
PhonePe surpasses Google Pay for the first time in more than a year
This is also the first time in more than a year when Google Pay did not handle the highest UPI transactions. PhonePe surpassed Google Pay with a recorded 835 million UPI transactions in October. Google Pay operated about 820 million as per records.
Following them were Paytm at 245 million transactions and Amazon Pay with about 125 million transactions.
PhonePe also confirmed in a statement that it has taken the “Market Leading Position” having more than 40% market share in UPI. There is no confirmation on the number of users that use these payment apps. In May, Google Pay had about 75 million transacting users. PhonePe came in second at 60 million and Paytm came in at 30 million.
Paytm and PhonePe also come with a wallet service. Google Pay doesn’t consist of this feature. It is not UPI-powered either. According to PhonePe, it processed a total of 925 million transactions (UPI and wallet) and had amassed over 100 million monthly active users.
PhonePe saw a huge surge in its transactions as more offline shops, merchants and customers chose a digital alternative to complete transactions. Flipkart’s Festival Sale and the popularity of the fantasy sports app, Dream 11, also helped PhonePe get more popular.
In a statement, Sameer Nigam, Chief Executive and founder of PhonePe said that their goal is to make digital payments a way of life for every Indian citizen. He said that their next target is to cross 500 million registered users by December 2022.
“In line with our brand ethos of ‘Karte Ja. Badhte Ja,’ (Hindi for keep working and growing) we continue to launch new and innovative products for every strata of Indian society, as well as enable digital payment acceptance across every merchant in every village and town in India,” said Nigam.