PhonePe beats Google Pay, becomes top UPI app
According to the data recently released by National Payments Corporation of India (NPCI), the Walmart-backed Unified Payments Interface (UPI) app PhonePe has topped the charts for December. The parameters include transaction volume as well as total value of the transactions for the month. The app has beaten Google Pay, Amazon Pay, NPCI's own BHIM UPI app, and Paytm by a significant margin.
The NPCI data shows PhonePe processed a whopping 902.03 million transactions in December, amounting to a total transacted value of Rs. 182,126.88 crore. Google Pay processed 854.49 million transactions, for a total of Rs. 176,199.33 crore. Google Pay's transaction volume puts it in second place, with Paytm at a distant third while recording a fraction of its volume.
PhonePe saw a 3.87 percent increase in transaction volume accompanied by a 3.8 percent rise in transaction value from November which explains its chart-topping performance last month. On the contrary, Google Pay saw a steep decline of 11 percent in transaction volume. The shift could be attributed to growing fondness for India-made products.
The BHIM UPI is placed sixth on NCPI's list. The home-grown app's total transaction volume and value for the month were significantly lower compared to Google Pay's. In November, the NPCI had announced a 30 percent cap on the volume of UPI transactions processed by third party apps. It was to impact PhonePe and Google Pay, while benefiting Paytm and MobiKwik.
UPI payments have been growing in popularity, thanks to the transaction speed, bank account integration, clean interfaces, and credibility they offer. With the convenience, benefits, and user interface being nearly identical across all the apps, users now have the luxury of choosing their preferred platform based on other factors, such as brand image and country of origin.