of India, which also operates other mobile retail payment systems like card network RuPay. PhonePe and Google Pay are the only apps that exceed the cap and have until 2022 to comply with the rules.įurther, the central bank plans to allow private players to compete with the National Payments Corp. of India has set a cap of 30% on UPI volumes handled by third-party payment apps. PhonePe and Google Pay's dominance in UPI may not last indefinitely, however. We expect all five companies to influence the mobile payments landscape in India. In November 2020, the messaging app launched the payments feature for 20 million users, but it is unclear whether it has become available to all its users. Facebook's WhatsApp, a popular messaging app, is handling few transactions compared to the overall market. Together, the two apps handled more than 12 billion transactions worth $338 billion.īy contrast, Paytm and Amazon Pay accounted for just 14% and 2%, respectively, of UPI transactions. PhonePe and Google Pay continue to maintain their lead as the most popular UPI payment apps, enjoying market shares of 44% and 35%, respectively, in the first six months of 2021.

Technology companies work with sponsor banks to build primary interfaces for people to initiate transactions directly from their bank accounts. One97, which operates as Paytm, is backed by Berkshire Hathaway Inc. India's fast-growing payments landscape features large technology companies such as Walmart Inc.-owned PhonePe, Alphabet Inc.'s Google Pay, Inc.'s Amazon Pay, One97 Communications Ltd.'s Paytm, Facebook Inc.'s WhatsApp Pay. The UPI scheme owes its swift rise in part to its openness to nonbank participation. Unlike Zelle, however, UPI has opened itself up to nonbanks, allowing technology companies to build consumer apps offering payment features. that enables account-to-account transfers. of India resembles Zelle, a popular payment network owned by leading banks in the U.S.

The UPI mobile payment network operated by the National Payments Corp. Our 2020 estimates of mobile payments include stored-value wallet transactions, which declined 20% to $21 billion. Mobile transactions processed through the Unified Payments Interface, or UPI, system - an interbank network that allows nonbanking apps to initiate money transfers directly from users' bank accounts - totaled $458 billion in 2020 and in August 2021 were on track for more than $1 trillion in annualized payment value. technology firms are increasingly at the center of consumers' financial interactions by leveraging India's banking infrastructure for payments.ĭespite an economic contraction in 2020, mobile payments rose 67% year over year to $478 billion in India, according to our market report. S&P Global Market Intelligence's 2021 India Mobile Payments Market Report discusses how large U.S. Payment apps either owned or backed by U.S.-based companies continue to dominate mobile payments in India.

1 one mobile market