September 2024 marked a historic moment for the Unified Payments Interface (UPI) in India, as total transactions exceeded 15 billion for the first time since its launch in April 2016. This surge in digital payments reflects the growing acceptance and reliance on UPI as a primary mode of transaction across the country.
PhonePe Leads the Charge
PhonePe continues to hold its position as the market leader, processing a staggering 7.22 billion transactions valued at Rs 10,30,871 crore in September. Despite a slight decline in both transaction volume and value compared to previous months, the app maintains a significant lead over its competitors.
- Market Share Breakdown:
- PhonePe: 48% of transaction volume
- Google Pay: 37.4% of transaction volume
- Paytm: 7% of transaction volume
In August, PhonePe’s market share was slightly higher at 48.3%, while Google Pay and Paytm held 37.3% and 7.21%, respectively. The competition remains fierce, with Google Pay showing an upward trend in both transaction volume and value, indicating a potential shift in user preferences.
Navi’s Impressive Ascent
Navi has made headlines by breaking into the top five UPI apps for the first time, recording 120 million transactions valued at Rs 6,549.10 crore. This achievement is particularly noteworthy as Navi experienced a remarkable 35% increase in transaction volume in September, showcasing its growing popularity among users.
- Transaction Highlights:
- CRED: 140 million transactions valued at Rs 47,982.71 crore
- Navi: 120 million transactions valued at Rs 6,549.10 crore
The rise of Navi reflects a broader trend of increasing competition in the UPI space, as more players strive to capture market share. Flipkart’s Super.money also demonstrated significant growth, achieving a 120% increase in transactions, landing it in the 15th position among UPI apps.
Transaction Trends and Insights
In September, peer-to-merchant (P2M) transactions accounted for 62% of the total 15 billion transactions, while peer-to-peer (P2P) transactions made up the remaining share. However, in terms of transaction value, P2P transactions dominated, representing over 72.5% of the total value.
- Transaction Composition:
- P2M Transactions: 62% of total transactions
- P2P Transactions: 72.5% of total transaction value
This data highlights the growing trend of consumers using UPI for merchant payments, which is crucial for the continued expansion of digital commerce in India.
Regulatory Changes and Future Goals
The National Payments Corporation of India (NPCI) has recently raised transaction limits for UPI, increasing the cap for certain payments to Rs 5 lakh. Additionally, enhancements to UPI Lite Wallet and UPI 123Pay limits aim to encourage more users to engage in digital transactions.
These regulatory changes align with the Indian government’s ambitious goal of achieving 1 billion transactions per day by 2026-27. As the UPI ecosystem continues to evolve, the competition among apps like PhonePe, Google Pay, and Navi is expected to intensify, driving innovation and improving user experiences.
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