Usages of Paytm and its UPI service appear to be catching on fast in tier II and III cities. Since January this year, the SoftBank and Alibaba-backed company claims to process over 400 million UPI-based transactions. With a surge in transaction value, it also claims to achieve 5 billion annual transaction run rate.
Paytm also revealed to have reached $50 billion annual run rate in terms of value. The company also witnessed a growth of 500 per cent in peer to peer transaction. Importantly, about 25 per cent of transaction volume hails from smaller cities such as Durgapur and Meerut.
With a 30 per cent month-on-month growth in June, Unified Payments Interface (UPI) has witnessed a remarkable comeback after six months. The total UPI transaction is about to touch 250 million figure
While the Alibaba-backed company has claimed to clock 94 million transactions over UPI in June, Flipkart-owned PhonePe receives over 50 million transactions out of the total number of UPI transactions.
Meanwhile, Google Tez, which started its operations in September last year has emerged as the second top player after Paytm. It accounted for about 22 per cent of the total volume on UPI, clocking 54 million transactions in June.
As far as the value of transactions is concerned, PhonePe stands at Rs 10,000 crore, whereas Paytm and Google Tez did not reveal figures.
The use of UPI has grown over the past two years and UPI 2.O expected to attract fresh users, expand use cases and drive repeat transactions on the platform.
Unified Payments Interface (UPI), which has the upper limit per transaction is Rs 1 lakh, is planning to double the transaction limit to Rs 2 lakh along with enabling new features on the platform.
The proposed new features of UPI 2.0 may include an overdraft facility for getting invoices attached with payment requests. Besides, it is planning to introduce a ‘block payment’ option, which consumers can adopt for cab rides, e-commerce deliveries, buying stocks during IPOs and other transactions.
Since battle for gaining more market share in UPI will be intensified in coming months, likes of Paytm, PhonePe, and Tez would compete aggressively for having an upper hand on others. While Paytm certainly has a pole position in UPI (at least in terms of value), it would be interesting to see how Paytm maintains its lead after WhatsApp Pay comes into the play.
The development was first reported by ET.