PhonePe is expanding its lead in the unified payments interface (UPI) ecosystem. In October, the company increased its market share, while its archrival Google Pay saw a minor decrease.
According to data released by the National Payments Corporation of India (NPCI), PhonePe recorded 1937.57 million transactions worth Rs 3,65,845.39 crore in October, compared to 1451.93 million transactions worth Rs 2,87,491.46 crore for Google Pay.
In terms of volume, UPI recorded 4.21 billion (421 crores) transactions worth Rs 7,71,444.98 crore in October.
PhonePe’s market share increased marginally to 45.92 percent in October, up from 45.2 percent the previous month. Google Pay’s market share fell from 35.42 percent to 34.41 percent during the same time period. In the previous month, the two players processed 80 percent of all transactions.
While all three apps provide core things such as phone recharge, electricity bill payments, and flight or train ticket booking, PhonePe and Paytm also provide additional services such as mutual fund payments, health, and auto insurance. Google Pay has recently partnered with SBI General Insurance to provide health insurance.
PhonePe has been able to dominate the UPI ecosystem because it aggressively focuses on merchant payments, particularly small businesses, and has outperformed its competitors.