Data on the National Payments Corporation of India (NPCI) website shows that in only a single year, the unified payments interface (UPI) market share of mobile payments company Paytm fell by about five percent. UPI is managed by NPCI.
The company that powers Paytm, One97 Communications Limited, saw its market share fall to a record low of 8.4 percent in April of this year from 13.3 percent in April of 2023. The numbers come from the number of transactions in a given month.
Since the beginning of the Paytm problem, PhonePe, the leader in the UPI market, has experienced an increase in its market share, rising from roughly 46% over the majority of last year to between 48% and 49%. In April, PhonePe held a 49 percent market share.
The Reserve Bank of India’s severe limitations on Paytm Payments Bank Limited (PPBL), a subsidiary of Paytm, have taken a toll on the company. Due to the RBI move, Paytm had to switch from using PPBL to power its UPI service to a third-party app model. This decline in market share is most likely the outcome of the transition.
Due to the company’s inability to acquire new clients, its market share has been declining. Additionally, it is attempting to hasten the transition of current UPI users from @paytm handles to bank UPI handles.
As its payment service provider (PSP) banks, Paytm has enlisted Axis Bank, Yes Bank, SBI, and HDFC Bank as partners in the TPAP service. The UPI apps are linked to the financial network by PSP banks. It was PPBL for Paytm up to this point.
