Only two apps capture 80% of UPI, big threat to digital payments:

UPI Digital Payment: India’s digital payments system is growing rapidly, but a major concern has emerged that 80% of the total transactions on the Unified Payments Interface (UPI) happen through just two mobile apps. This puts the entire system at risk of overdependence.

India Fintech Foundation (IFF) has requested the government and the Reserve Bank of India (RBI) to take immediate action on this issue. According to IFF, if any of these two apps gets shut down due to technical glitch, cyber attack or policy dispute, the entire UPI system could be seriously affected.

September 2025 statistics

According to National Payments Corporation of India (NPCI) data:

-19.63 billion transactions

Total value: Rs 24.90 lakh crore

These figures show that UPI has become the mainstay of India’s cashless economy, but competition in the market is decreasing.

What is the problem?

If there are so many dependencies on only two apps, then:

– Small and new Third Party App Providers (TPAPs) will not get a chance to come forward

– New ideas and innovation will decrease

– The threat of monopoly will increase

What should be done?

IFF suggests that:

– Modify UPI Incentive Policy

– Give more encouragement to small TPAP

– Maintain diversity and competition in the market

This will further strengthen the dream of Digital India and will also ensure the stability of UPI. It remains to be seen what action RBI and NPCI take on this issue.