With the launch of Unified Payments Interface (UPI) in 2016 and quick adoption of the mobile number-based fund transfer option amongst users, there is a stiff competition between local and global giants for claiming the largest pie.
When there are fintech companies such as Google Tez, Paytm, PhonePe, Whatsapp UPI and various conventional banks offering UPI-based payments service, YES Bank has reported controlling 20 per cent of the market share in volume during FY18.
YES Bank, in partnership with Flipkart’s PhonePe, launched India’s first UPI-based mobile payments app in August 2016.
The bank accounted a total volume of 182.83 million UPI-based transactions of 914.15 million transactions between March 2017-2018.
Besides, YES Bank also claimed to hold 72 per cent market share, the largest market share, in UPI merchant payments.
With a total UPI registered user base of over 30 million on its platform, YES Bank claims to have merchant base of over 80,000.
The newer claims by YES Bank also reflect the figures of its partner platform PhonePe. Last month, Paytm and PhonePe were embroiled in a war of words after the former’s claim to take a volume lead in UPI transactions with 68 million transaction.
The Flipkart-owned company responded in a blog post and alleged that media narrative around Paytm lead in UPI has been narrowly focussed on volumes not value.
In the blog post, PhonePe explained that besides volume, a balanced scorecard of UPI also include the metrics of Average Transaction Value (ATV) and Average Transactions per Customer (ATPC).
In February alone, PhonePe’s total value of UPI transaction stood at Rs 5,120 crore of Rs 19,126 crore transacted through all the other UPI-based apps. The value of UPI transaction at PhonePe is over 25 per cent of the total value.
According to the blog post, the average transaction value (ATV) for Paytm was about Rs 38 while for PhonePay it’s Rs 1,800.
The UPI-based (Unified Payment Interface) transactions have been growing continuously, reaching new heights every month.
In March, the volume of UPI-based transactions grew to 178.05 million, clocking a whopping value of Rs 24,172.6 crore. Besides, the number of banks live on UPI app also reached to 91. These figures are the highest so far since the launch of UPI in August 2016.
The development was first reported by Medianama.
