PhonePe processes a whopping 9.8B UPI transactions in December
What's the story
PhonePe has dominated India's Unified Payments Interface (UPI) ecosystem in December, processing a whopping 9.81 billion customer-initiated transactions worth ₹13.61 lakh crore. The data, compiled from National Payments Corporation of India (NPCI) disclosures, shows that the Walmart-backed fintech company had a market share of 45.35% by volume and an even higher value share of 48.68% among the top 10 UPI apps during this period.
Market competition
Google Pay and Paytm follow PhonePe's lead
Google Pay came in second with 7.5 billion transactions, capturing a 34.64% share of total volumes and a 34.25% share of overall transaction value. Paytm held on to its third position with 1.65 billion transactions during December, accounting for a volume share of 7.65% and value share of 6.32%. The competition among these top three players continues to shape India's digital payment landscape.
Market dynamics
Other players in the UPI market
Beyond the top three, other players in the UPI market include Navi and super.money with 678 million and 287 million transactions, respectively. The government-backed BHIM app saw 158 million transactions while CRED slipped to eighth place with 157.25 million transactions. Despite its lower transaction count, CRED registered nearly three times higher transaction value than BHIM during this period.
Transaction surge
UPI transactions hit record high in December
December witnessed one of the highest-ever monthly transactions for UPI, with a total of 21.63 billion transactions worth ₹27.97 lakh crore. The spike was mainly due to year-end spending, festive demand, and increased usage of UPI for small offline payments in tier II and III cities. This trend highlights the growing acceptance and reliance on digital payment systems across India.
Consumption trends
Everyday consumption categories led UPI transactions
In December, everyday consumption categories led UPI transactions. Groceries and supermarkets topped the chart, followed by fast food outlets, restaurants, telecom services, and fuel stations. Digital gold also saw a strong uptick during this period with 183.32 million transactions worth ₹2,079.31 crore from 123.42 million transactions valued at ₹1,215.36 crore in November.