The share of transactions made through the Bharat Interface for Money (BHIM) app in the overall pie of Unified Payments Interface (UPI) payments shrank to 6% in December from 8% in November, as Paytm introduced the payment mode on its platform. According to data released by the National Payments Corporation of India (NPCI), the volume of UPI transactions rose 39% month-on-month (m-o-m) to 145.5 million in December 2017, while their value rose 36% to Rs 13,144 crore. The number of transactions made using BHIM rose 11% m-o-m to 9 million, while their value rose 21% to Rs 3,083 crore. Launched on December 31, 2016, BHIM was developed by NPCI to popularise its UPI channel, which had been languishing since its launch in August 2016.
It consistently accounted for 45% of all UPI transactions by volume for much of 2016. That changed with the launch of Google India’s Tez app in September, which used cashbacks and other freebies to garner a large number of users soon after launch. According to the firm, Tez accounted for 69.5% of all UPI transactions in November. More recently, Paytm has leveraged its existing base of users to push UPI transactions. Kiran Vasireddy, chief operating officer at Paytm, recently told FE that within weeks of the launch of UPI on the Paytm platform in November, its share in overall UPI volumes has gone up to 15-20%.
Another significant player in the UPI ecosystem is Flipkart-owned PhonePe, which contributed 40% of all UPI transactions till before the launch of Tez. The numbers suggest that the share of PhonePe in the pie would have fallen as well. Sameer Nigam, chief executive officer at PhonePe, told FE last month that while their share in peer to peer UPI transactions may have slipped, they continue to hold a significant share in merchant UPI transactions. “We don’t bother much about market share today. For what it’s worth, though, we had over 70% market share of all merchant transactions on UPI in November,” Nigam said.