Amidst losing UPI marketshare race to arch-rivals Google Pay and PhonePe, Paytm has revealed the total transaction happened through its payments platform. According to the Alibaba-backed company, it has recorded 700 million transactions in June across payments mode ie wallet, UPI, cards and net-banking.
During the month overall UPI transactions was recorded at about 754 million. On comparison front, Paytm’s overall transaction via its platform is more than the entire transaction processed by UPI-based payments apps such as Google Pay, PhonePe, Amazon Pay, and BHIM.
The company has attributed the success to a gamut of payments method against other players who allow only peer-to-peer transactions via on UPI. It’s worth noting that Paytm has not been giving UPI related transactions figure since the past four months.
The case in point – Paytm has not revealed the exact figure for UPI transactions where Google Pay and PhonePe have been eating up its marketshare over the past 3-4 months.
For instance, Google Pay had registered 240 million transactions amounting to Rs 55,000 crore in May. On the contrary, PhonePe and Paytm registered 230 million and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively.
The separate figure via UPI transaction will reflect the dominance of these private payments players.
In terms of merchant plus P2P transactions, Paytm is indeed the market leader. For FY19, Paytm had recorded $50 billion gross transaction value through 5.5 billion transactions, miles ahead of its peers.
Now, the real challenge would be dealing with P2P transaction where the firm has decided to shift cashback from P2P payments to merchant payments.
Importantly, Paytm holds an 80% marketshare in the offline payments and a recent report claimed that merchant payments on UPI has grown 15% from April to 31% in June. So, Paytm’s bet on incentivizing merchant payments will likely to bear fruit in the future.
Further, Paytm targets reaching more than 2.5 crore merchants for the current financial year.
In terms of offline merchant payments, PhonePe is the only close competitor that has been looking for a mega fund to fight against the decacorn firm.
The development was reported by ET.