Digitalization is taking place in India. ‘Digital India’ seems to be yielding better results every month. A great leap has been made in the digital ecosystem as a whole. The recent developments of July 2021 are also providing great hope for the future.
With over 3,247.82 million UPI transactions in July, the value of transactions crossed Rs. 6 lakh crore for the first time.
PhonePe inched ahead of Google Pay in the runner-up spot, which is also managed to retain. Google Pay unquestionably crossed a huge milestone last month.
Google Pay Crosses 1 Billion UPI Transactions
According to Google Pay, it accounted for 1,119.16 million UPI transactions worth Rs 230,874 crore. In the end, this resulted in one billion subscribers.
PhonePe secured its lead in the monthly UPI transactions with 1.4 billion transactions, accounting for 46% of the market. National Payments Corporation of India (NPCI) data reveals that the total value of transactions via PhonePe in July was Rs 288,572 crore.
The Payments Bank App saw 454.06 million transactions worth Rs 51,694 crore. Google Pay’s volume market share stood at 34.45%, and Paytm Payments Bank App at 14%.
This is a rise of over 15% in volumes for PhonePe, 15% for Google Pay, and an 18.50% rise for Paytm Payments Bank App on a month-on-month basis.
Keeping competition fair
Recent National Payments Corporation of India (NPCI) guidelines for Third-Party Application Providers (TPAP) have a volume cap of 30%. The policies are aimed at preventing monopolies by big players and regulating the competition.
PhonePe and Google Pay will have to adhere with these rules from Jan 1, 2021. Existing dominant players with more than 30% market share by volume have two years to abide by the rules.