PhonePe, Google Pay, and Paytm Dominate Indian Digital Payments Market

In April 2023, PhonePe, Google Pay, and Paytm continued to control the Indian digital payments market, accounting for 97% of UPI transactions, according to National Payments Corporation of India (NPCI) data. These three firms processed 862.54 crore transactions, equivalent to 95% of the market in terms of transaction value, totaling Rs 3.39 lakh crore. In March 2023, the trio collectively processed 841.91 crore transactions, amounting to Rs 13.44 lakh crore.

Walmart-backed PhonePe remained the top player in the digital payments industry, accounting for 421.6 crore transactions valued at Rs 7.10 lakh crore in April. This gave it 50.47% of the market in terms of transaction value and 47.39% in terms of transaction volume. Meanwhile, P2P transactions accounted for 77% of overall UPI transaction value and 43% of the total transaction count. Sub-Rs 500 payments accounted for only 3.21% of the total amount.

UPI Transactions for Groceries, Supermarkets, and Restaurants Are the Highest

In April 2023, UPI transactions amounted to 889.81 crore, totaling Rs 14.07 lakh crore. Although transaction count increased by 2.45% month-on-month, the transaction value decreased by 0.24% compared to March 2023. P2M transactions accounted for 22% of the total transaction value and 56% of the total payment count. UPI payments for groceries, supermarkets, and restaurants emerged as the highest transacting categories, followed by telecommunication services and games, while utilities and online marketplaces were classified as medium transacting.

Growth of UPI Transactions

The total number of UPI transactions in India grew by 2.45 per cent month-on-month (MoM) in April 2023, from 841.91 crore transactions in March 2023 to 889.81 crore transactions in April 2023. The total value of UPI transactions, however, decreased by 0.24 per cent MoM, from Rs 13.44 lakh crore in March 2023 to Rs 14.07 lakh crore in April 2023.

Walmart-Backed PhonePe Remains the Largest Digital Payments Player

Walmart-backed PhonePe was the largest digital payments player in India in April 2023, with 421.6 crore transactions worth Rs 7.10 lakh crore. It had a market share of 50.47 per cent in terms of transaction value and 47.39 per cent in terms of transaction count.

P2P Transactions Accounted for 77% of Overall UPI Transaction Value

P2P (peer-to-peer) transactions accounted for 77 per cent of overall UPI transaction value in April 2023. The majority of P2P transactions were above Rs 2,000, with sub-Rs 500 payments accounting for only 3.21 per cent of the total amount.

P2M Transactions Accounted for 22% of Total Value and 56% of Total Payment Count

P2M (peer-to-merchant) transactions accounted for 22 per cent of total value and 56 per cent of total payment count in April 2023. The top transacting categories for P2M transactions were groceries, supermarkets, and restaurants, as well as telecommunication services and games. Utilities and online marketplaces were classified as medium transacting.

Conclusion

The Indian digital payments market is still dominated by a few large players. However, the market is growing rapidly and new players are entering the market. It will be interesting to see how the market landscape evolves in the coming years.

The Indian digital payments industry continues to grow rapidly, with PhonePe, Google Pay, and Paytm maintaining their dominance in the market. The shift towards digital payments and the increasing popularity of UPI transactions highlight the need for robust and secure payment platforms. As the industry continues to evolve, it will be interesting to see how these players adapt and innovate to stay ahead of the competition.