UPI and Digital Payments in India
PhonePe, Google Pay, Paytm and the App Market
A few apps handle most UPI payments, with PhonePe and Google Pay together holding the large majority.
Apps compete even though the rails are shared.
Leaders
PhonePe, backed by Walmart, and Google Pay handle a very large share of transactions.
Paytm
Once the leader, Paytm’s share fell after the RBI restricted its payments bank in 2024.
Market cap
NPCI has set a limit on any one app’s share of volumes to prevent concentration, and has extended deadlines for it.
Other players
Banks’ own apps, CRED, Amazon Pay, WhatsApp and others also compete.
Because any app can pay any other, users switch freely, so apps compete on rewards and extra services.
NPCI owns the network; apps are front ends.
- A few apps dominate volumes.
- Paytm lost share after 2024 restrictions.
- NPCI wants to limit concentration.
- Banks' apps also compete.
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