Built on India’s United Payments Interface (UPI), Google Pay and Walmart’s PhonepPe seem to be thriving. The shared payments system was introduced by the state and it is supported by 200 Indian banks.
The National Payments Corporation of India (NPCI) that is mandated to govern UPI released information that indicated the two companies’ market share for the month of November. Google Pay commanded 45% of the transactions volume, while PhonePe emerged with a little over 41%.
Created by the NPCI and regulated by the Indian central bank, the Reserve Bank of India, UPI enables both P2P inter-bank transfers and digital payments. Unveiled in 2016, the network additionally reached over 2 billion transactions last month, an increase from 1.2 billion in November last year. As per the central bank data, the overall transaction count for digital payments in the South Asian country stands more than 34 billion for the current financial year.
Google and Walmart are not the only companies operating on UPI. There are other companies like Amazon Pay, Paytm Payments Bank, and Whatsapp Pay, but their growth in the market is slow. Facebook’s Whatsapp that just got approved in June has only managed to capture 0.31% of the market after a 2-year trial period.
It can be deduced that the top three platforms using UPI account for 93% of the transactions made. The NCPI does not encourage such market dominance and thus, it declared in November, that company applications would not take more than 30% of the transaction volume on a rolling basis. This stipulation is to take effect in January 2021 but there is no clear path on its implementation.
The UPI programme has been dubbed one of India’s fintech success stories, and it’s a fine example of what the state can accomplish using tech to enhance financial services.