Google Pay and Walmart’s PhonePi dominate India’s digital payment sector, built by the country’s United Payments Interface (UPI), a state-initiated shared payment infrastructure has been launched and 200 Indian banks have joined it.
According to Information According to UPI’s board of directors, the National Payments Corporation of India (NPCI), Google Pay accounted for about 45% of UPI’s transactions, and PhoneP came in second with less than 41% of PI for November.
Developed by NPCI and regulated by the Central Bank of India, the Reserve Bank of India enables both UPI digital payments and peer-to-peer interbank transfers. Launched in 2016, the network accounted for 2 billion transactions last month, up from 1.2 billion in November 2012. According to the central bank, the total number of transactions for digital payments in India is more than 34 billion for the current financial year.
Other prominent names in the sector, including Paytm Payments Bank, Amazon Pay and WhatsApp Pay, are also on the list of payment services using the UPI network, but their growth still seems to be well-organized. Facebook’s WhatsApp was approved in June to roll out payment services in India after a two-year long test phase, but has so far managed to gain about 0.31% market share.
The UPI-based digital payment network is visually dominated by the top three platforms, with NPCI announcing in November as a clear move to combat the dominance of the national market over 93% of transaction volume over a single application for over 30% of UPI transactions on a rolling basis. Will not be allowed to. The cap is expected to take effect from January 2021, however Local report Point out that there is very little clarity about how the NPCI plans to implement it.
Recognized as one of India’s top fintech success stories, the UPI network is one of the few examples where the state has led innovation in financial services.