UPI In August: Navi’s Market Share Climbs To 4.4%, PhonePe & Google Pay Slip

Sachin Bansal-led Navi continued to gain ground in the UPI market in August, with its share of transaction volumes rising to 4.4% from 4% in July. 

The fintech platform’s market share has risen steadily over the past few months, from 3.7% in June to 4% in July and 4.4% in August, according to Inc42’s calculations based on NPCI data. 

Navi processed around 1.08 Bn UPI transactions worth ₹52,512.85 Cr during the month, compared with approximately 947 Mn transactions worth ₹48,318 Cr in July.

Meanwhile, market leaders PhonePe and Google Pay saw their shares decline marginally, with their combined market share falling to 78.3% from 78.6% in July.

PhonePe processed around 11.25 Bn transactions worth ₹14.26 Lakh Cr in August, while its volume market share slipped to 45.9% from 46.1% in July.

Google Pay’s market share declined to 32.4% from 32.5%. The platform processed around 7.9 Bn UPI transactions during the month under review.

Paytm retained its position as the third-largest UPI app, with its transaction volume market share rising marginally to 8.1% from 8% in July. The fintech major processed around 1.98 Bn transactions worth ₹2.04 Lakh Cr during the month.

Meanwhile, Flipkart-backed super.money saw its market share decline to 1.7% from 1.9%. It processed around 421.87 Mn transactions worth ₹20,363.26 Cr in August.

BHIM’s share increased marginally to 1.04%, translating into around 253 Mn transactions. FamApp by Trio retained a 0.9% share, processing approximately 223 Mn transactions.

Overall, UPI platforms collectively processed a record 24.51 Bn transactions in August, up 3.6% from 23.66 Bn in July.

The latest data comes ahead of the implementation of the new merchant discount rate (MDR) framework for certain UPI transactions.

Starting October 15, merchants receiving eligible UPI payments above ₹2,000 will be charged an MDR of 0.4%, capped at ₹300 for transactions exceeding ₹75,000. Person-to-person payments will continue to remain free.

Payments exceeding ₹2,000 in sectors such as railways, fuel, telecom, insurance, and certain utilities will attract a flat charge of ₹5. Capital market-related payments will carry a lower MDR of 0.02%, capped at ₹300.

The MDR framework will open up a direct revenue stream for third-party application providers, which have so far been unable to monetise UPI transactions directly and have largely relied on payments data to cross-sell other financial services to users. 

The post UPI In August: Navi’s Market Share Climbs To 4.4%, PhonePe & Google Pay Slip appeared first on Inc42 Media.