PSU banks jump into QR-code payments to take on fintechs
Major public sector banks like SBI, PNB, and Central Bank of India are increasingly rolling out QR-code payments for merchants.
This move is their way of catching up with digital payment leaders like Paytm and PhonePe, aiming to win back some ground—and UPI revenue—in India's booming cashless economy.
Why does this matter?
QR codes are everywhere now—728 million in use compared to just 11 million card machines.
PSBs want a bigger slice of the action by offering easy QR payments and soundboxes directly to small shops.
It's not just about payments; it's about building relationships with merchants and getting valuable data for future lending.
Even as banks step up, fintechs like Paytm are still growing fast—Paytm's payment services revenue grew about 27.3% year-on-year in the September 2025 quarter (Q2 FY26)—so the competition is only heating up.