Navi Expands UPI Market Share in July; PhonePe, Google Pay See Slight Decline
India's UPI payment system saw shifts in July, with Navi Fintech increasing its market share while leaders PhonePe and Google Pay experienced marginal losses.
Navi Fintech, an Indian fintech startup, continued to gain market share in the country's Unified Payments Interface (UPI) system during July. The company's share grew to 4% for the month, up from 3.7% in June. Navi processed 94.7 million transactions worth ₹48,318 crore in July, marking a significant increase in both volume and value compared to the previous month.
Meanwhile, the dominant players in the UPI market, PhonePe and Google Pay, saw their market share slightly diminish. Their combined share fell to 78.6%. PhonePe handled 1,085.8 million transactions valued at ₹14.4 lakh crore, while Google Pay processed 764.98 million transactions totaling ₹10 lakh crore.
Other major UPI players, including Paytm, maintained their positions. Paytm held a steady 8% market share in July, consistent with June. Flipkart's super.money, WhatsApp, CRED, Amazon Pay, and BHIM UPI also largely retained their market shares, with a slight increase observed in the combined share of smaller players.
Overall UPI transaction volume rose by 4% to 23.66 billion in July, with the total transaction value increasing by 3% to ₹29.88 lakh crore. Year-on-year growth for July was 22% in transaction volume and 19% in value.
The shifts occur as India considers introducing a Merchant Discount Rate (MDR) on select UPI transactions to create new revenue streams for payment providers. However, person-to-person payments are expected to remain free of charge.