Razorpay Ventures into Consumer UPI Market with $30 Million Investment in POP Payments Platform

Leading fintech unicorn Razorpay has made a bold entry into India’s consumer UPI market with a $30 million investment in payments and rewards platform POP. The move signals Razorpay’s intent to expand beyond business payments and target direct consumer engagement through innovative, loyalty-first digital payment solutions.

This marks Razorpay’s most prominent push into the consumer-facing UPI app segment, an area dominated by heavyweights like PhonePe and Google Pay.

Strengthening POP’s Consumer Rewards and Merchant Reach

POP, which launched in June 2024, integrates UPI payments, commerce, and credit under one app. With the new funding, POP plans to:

• Enhance its rewards ecosystem via its proprietary POPcoins program

• Expand partnerships with D2C and lifestyle brands

• Boost product innovation and scale up operations

POPcoins, a brand-sponsored, multi-partner rewards currency, can be earned on every transaction and redeemed for exclusive discounts across a wide network of merchants.

According to Razorpay Co-founder & CEO Harshil Mathur, the investment aligns with the company’s mission to support D2C merchants in building lasting customer relationships through rewards and personalized engagement.

POP’s Growth: Millions of Users in First Year

In just under a year, POP has demonstrated strong traction:

• 6 lakh+ daily UPI transactions

• Over 1 million unique monthly active users

• More than 2 lakh monthly commerce shipments

• Issuance of over 40,000 RuPay credit cards in partnership with Yes Bank

The company has already carved a niche with its rewards-driven model, setting it apart from traditional cashback-focused apps.

POP Founder Bhargav Errangi emphasized this differentiation, stating, “India doesn’t need another cashback-only app. With Razorpay’s support, we’re building a loyalty-first payments ecosystem that empowers businesses with purpose and scale.”

POP’s UPI Market Position

As per NPCI (National Payments Corporation of India) data, POP ranked 21st among UPI apps in May 2025, processing 13.6 million transactions worth over ₹500 crore.

While this is modest compared to market leaders, it reflects steady growth for a relatively new player in a highly competitive space.

Razorpay’s Loyalty Play: From PoshVine to POP

This investment follows Razorpay’s earlier acquisition of PoshVine, a loyalty solutions provider, which now operates under Razorpay Engage. By backing POP, Razorpay is doubling down on the loyalty-tech ecosystem, combining payment capabilities with personalized consumer engagement.

The integration of POP’s model with Razorpay’s infrastructure could lead to new offerings that blend rewards, discovery, and payments—all within a single platform for users and merchants alike.

India’s Crowded but Dynamic UPI Market

India’s UPI ecosystem is dominated by PhonePe and Google Pay, which together account for 80%+ of all UPI transactions. Other players such as Paytm, Amazon Pay, and CRED maintain smaller market shares but continue to innovate.

The entry of new players like POP highlights the ongoing fragmentation and specialization in the sector. These newer platforms often target niche demographics, such as urban D2C shoppers or Gen Z users, with differentiated value propositions like rewards, credit integration, or investment options.

Jar and Others Signal Rising Competition

Just last month, fintech startup Jar entered the UPI TPAP (Third-Party Application Provider) space in partnership with:

• BharatPe as the Technology Service Provider (TSP)

• Unity Small Finance Bank as the Payment Service Provider (PSP)

This reflects a broader trend of emerging fintechs vying for relevance in India’s open UPI infrastructure, where partnerships can fast-track market entry.

MDR Debate Adds Policy Uncertainty

Amid this flurry of activity, the debate around MDR (Merchant Discount Rate) remains unresolved. Although recent reports suggested that the government might introduce MDR on high-value UPI transactions, the Union Finance Ministry clarified last week that no such plans are in place.

Earlier this year, the Payments Council of India urged the government to reconsider the Zero MDR policy, arguing that sustainable business models require a small merchant fee to cover infrastructure and innovation costs.

UPI Surpasses Visa in Daily Volume

As of June 1, UPI hit 644 million transactions, rising to 650 million on June 2. This daily volume surpasses that of Visa, which averaged 639 million daily transactions globally during FY24—highlighting India’s leadership in real-time payments adoption.

Conclusion

Razorpay’s investment in POP signals a major strategic shift as it enters the consumer UPI space with a differentiated, rewards-led approach. As POP scales and strengthens its position, it could become a serious contender among India’s digital payment platforms, offering loyalty-first solutions that appeal to both consumers and merchants.