PhonePe and Google Pay accounted for about 79% of Unified Payments Interface (UPI) transaction volume in May. Their combines share was nearly 86% a year earlier, as smaller rivals gained ground.

PhonePe’s share edged down to 46.3% from 46.5%, while Google Pay fell to 32.7% from 36.1%.

Paytm, Navi, super.money, and FamPay all gained share during the period. Paytm posted  the largest share among the smaller player at 7.9%.

Overall UPI transactions increased 24.2% year on year to 23.2 billion, worth 3 million rupees (US$32,000) crore.

The National Payments Corporation of India’s proposed cap on any single third-party UPI app processing more than 30% of total UPI transaction volume is measured on a rolling three-month basis. The regulator introduced the limit to address concentration risk in the payments market.

The rule, first proposed in 2020, has been repeatedly delayed and now runs until December 31, 2026. The latest extension was meant to avoid hindering UPI growth while giving smaller players more time to scale.

🔗 Source: The Economic Times

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