11-Apr-2024
2 mins read
Indian Fintech brand Paytm’s market share in UPI witnessed a slight decline in March. The market share dropped by 9% in March after RBI imposed certain restrictions on Paytm Payments Bank. In February, Paytm saw its UPI market share decline to 11% from 11.8% in January 2024.
The recent drop in Paytm’s UPI market share dragged it down to lowest in the last four years. NCPI began to disclose UPI App transaction volume and value in April 2020. Since then, 9% is lowest which raises concern for the long term investors.
Throughout the year 2023, Paytm UPI market share was at 9% approximately. But now, it is losing its value slowly which is a big concern for management as well as for investors.
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What About Paytm Competitors?
Conversely, a flipkart backed mobile payment app PhonePe is the leading and dominant player in the market and has witnessed a rise in its market share. PhonePe achieved a volume market share exceeding 50% in the past two months.
In the second position, Google Pay experienced a slight increase in the market share by a few percentage points over last year.
In 2020 and 2021, Paytm holds 11% to 12% of the transaction volume market share. Slowly the market share rose to 13%, before showing a subsequent decline to 9%. However, in 2028 and 2019, the company boosted the market share in the UPI to 40%.
Since March 15, Paytm has started operating as a third-party application provider, mirroring competitors like PhonePe and Google Pay, rather than as a payment bank app. This shift has resulted in a decrease in the market share.
To facilitate this transition, Paytm has enlisted Axis Bank, SBI, Yes Bank and HDFC Bank as its payment service provider partners for TPAP service. These banks serve as intermediaries connecting UPI apps to the banking network replacing Paytm Payments Bank.
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