Paytm UPI market share drops by 5 percent in one yearMobile payments firm Paytm's unified payments interface (UPI) market share dropped by almost five percentage points in one year, according to data available on the National Payments Corporation of India (NPCI) website.
Its market share dropped to nine percent in March, its lowest level in the last four years.
PhonePe has maintained more than 50 percent market share in UPI transaction value since February.
Paytm's value market share stood at 6.2 percent in April 2024.
Paytm has been hit by the Reserve Bank of India's crippling restrictions on its associate company, Paytm Payments Bank Limited (PPBL).
Paytm UPI market share drops by 5 percent in one year
Mobile payments firm Paytm's unified payments interface (UPI) market share dropped by almost five percentage points in one year, according to data available on the National Payments Corporation of India (NPCI) website. NPCI runs UPI.
One97 Communications Limited, which runs Paytm, has seen its market share drop to a new low of 8.4 percent in April this year from 13.3 percent the company had in April of 2023. The figures are based on transaction volume in a month.
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Paytm generates around three-fourths of its gross merchandise value (GMV) from UPI and maintaining its relevance as the third largest player in the payments platform is important for the company.
Its market share dropped to nine percent in March, its lowest level in the last four years. NPCI started sharing UPI apps transaction volume and value from April 2020.
Meanwhile, UPI market leader PhonePe has seen its market share move up from around 46 percent during much of last year to around 48-49 percent since the Paytm crisis started. PhonePe had a 49 percent market share in April.
PhonePe has maintained more than 50 percent market share in UPI transaction value since February. Paytm's value market share stood at 6.2 percent in April 2024.
Paytm has been hit by the Reserve Bank of India's crippling restrictions on its associate company, Paytm Payments Bank Limited (PPBL). Paytm's UPI service was powered by PPBL and since the RBI action, the company had to transition to a third party app model. The transition has likely resulted in this drop in market share.
The company's market share has been dropping as the firm cannot onboard new customers. It is also trying to accelerate the migration of existing UPI customers from @paytm handle to the bank UPI handles.
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Paytm has roped in Axis Bank, Yes Bank, SBI and HDFC Bank as its payment service provider (PSP) banks to be its partners in the TPAP service. PSP banks connect the UPI apps with the banking network. For Paytm it was PPBL until now.
