India’s regulated digital payment network, United Payments Interface (UPI) joined by over 200 Indian banks is dominated by Google Pay and PhonePe. As per data <a href="https://www.npci.org.in/what-we-do/upi/upi-ecosystem-statistics" target="_blank" rel="nofollow noopener">released</a> by the governing body of UPI, GooglePay had transacted over 45% volume while Walmart’s PhonePe processed over 41% of transaction volume in November. Initially launched in 2016, the state-backed network had received over 2 billion transactions, up from about 1.2 billion transactions since November 2019.
<h2><strong>India’s Digital Payment Network Is Dominated by Google and PhonePe</strong></h2>
The state-backed digital payment network is regulated by the country’s central bank, the Reserve Bank of India. The UPI network enables digital payments as well as peer-to-peer transactions between banks.

As per the <a href="https://www.cryptoknowmics.com/news/with-the-banking-ban-lifted-can-indian-government-afford-a-blanket-ban/">Reserve Bank of India</a>, the overall transaction count for digital payments in India stands at over 34 billion for the current fiscal year.

There are various payment services that are in the UPI network including Paytm, AmazonPay, and WhatsApp Pay. However, the userbase in this payment service has been quite low.

For Instance, WhatsApp Pay had received approval to launch its payment services in India followed by a testing phase for over two years. However, it could get hold of only a mere 0.31% of the market share.

The regulated digital payment platform is heavily captured by the top three platforms, capturing for about 93% of transactional volumes.
<h2><strong>UPI Is the Leading Fintech Platform in India</strong></h2>
Meanwhile, UPI's governing body, the National Payments Corporation of India (NPCI) had announced last month that it would not allow for the market dominance of a single entity. The NPCI stated that no single app would be allowed for over 30% of UPI transactions on a continuous basis.

The above clarification would go into effect from January 2021, however, reports highlight that there is no further clarity on how that would be implemented. UPI has been termed as the leading fintech platform in India where a state-led initiative has been able to innovate in terms of financial progress.

India’s Digital Payment Network Dominated by Google and PhonePe

India’s regulated digital payment network, United Payments Interface (UPI) joined by over 200 Indian banks is dominated by Google Pay and PhonePe.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

India’s Digital Payment Network Dominated by Google and PhonePe

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