PhonePe increases its market share in UPI to 46% in June; G-Pay remains flat

The gap between the market share of two leading UPI-based apps PhonePe and Google Pay has further widened in June as the home-grown company recorded a new high in terms of the number of transactions in the month. 

PhonePe has recorded 1292.71 million transactions amounting to 262,565.88 crore in June as compared to Google’s Pay 972.26 million transactions worth Rs 207,287.73 crore, data released by the National Payments Corporation of India shows.

In terms of market share, PhonePe now controls 46% share in the UPI ecosystem while Google Pay has 34.6%. The Bengaluru-based company had 45% market share in May and Google pay recorded 34.67%. Where PhonePe was able to increase its share by 1%, Google Pay remained flat for the month. 

UPI had registered 2807.51 million transactions in June in which peer-to-peer transactions stood at 1550.08 million and the remaining 1257.43 million belonged to peer-to-merchants.

In the top five list, Paytm Payments Bank maintained its third position with 326.53 million transactions worth Rs 40,614.09 crore. PPB was followed by Amazon Pay and Yes Bank apps. BHIM, which recorded 22.84 million transactions worth Rs 7319.77 crore, was ahead of Yes Bank apps in terms of value of transactions processed through its platform.

Yes Bank apps have recorded 24.72 million UPI transactions worth Rs 5227.04 crore in June.

Facebook-owned messaging app WhatsApp’s payment feature did not show any growth and recorded a mere 0.46 million transactions worth Rs 42.44 crore. The company is likely to ramp up its pace in the coming months as it has been allowed to broaden its user base.  According to Entrackr’s sources, NPCI has given a nod to WhatsApp to further expand its UPI-based payments feature to more users.

WhatsApp, which has over 530 million users in India, was allowed to onboard up to 20 million users to its payments platform by NPCI in November 2020.

It’s worth noting that NPCI had already provided standard operating procedures for all third party UPI apps to cap their market share to 30%. While NPCI has provided exemptions to existing apps in this segment, it would be interesting to see how these players implement the new rules formulated by the not for profit organisation.