look news india
Ahmedabad: The path of fintech company Paytm is becoming increasingly difficult. Paytm reported a decline in Unified Payments Interface (UPI) transactions for the third consecutive month in April, data from the National Payments Corporation of India showed.
In April this year, the company processed 111.71 crore transactions, representing a 9 percent month-on-month decline in volume compared to 123 crore transactions processed in March. Due to this, the company's market share in the UPI ecosystem has decreased.
The company achieved 8.4 percent market share in the UPI app ecosystem in April. It was 10.8 percent in February and 9.13 percent in March. However, Paytm has retained its position as the third largest player in the UPI ecosystem as other players are much smaller than Paytm.
Meanwhile, the top two companies, PhonePe and Google Pay, made 6.50 crore and 502.73 crore transactions respectively in April. Their share in the total transaction count was estimated to be 48.8 percent and 37.8 percent respectively. After the Reserve Bank's action on Paytm's subsidiary Paytm Payments Bank, both the companies have increased their stake in UPI transactions.
In February 2024, Walmart-owned PhonePe accounted for 47.3 percent of total transaction volume. At the same time, the share of Google Pay in the same month was 36.7 percent.
The volume of transactions processed on UPI on Paytm will continue to decline as the company will not be able to add new users unless existing users migrate to the new handle.