Strategies for Increasing Share of Market - PhonePe

I am closely observing the market sharing in UPI Transactions in India. There was a time when Paytm had the monopoly. When Google launched Gpay, it started flourishing and slowly it crossed the Paytm w.r.t market share. Then many other players like Phonepe, Amazon pay came to UPI ecosystem and it started sharing the market. Now if I go back in 2020, during covid era, UPI has become an essential part of everyone. And from there, Phonepe has started the run. In Ocotober 2020, PhonePe recorded 835 million UPI transactions while Google Pay hit about 820 million, according to people familiar with the matter. This is the first time they crossed the Gpay. And the gaps are widening slowly.

This is a data of 2022 UPI transaction and you can observe how far they have reached. And as per the data released by the National Payments Corporation of India (NPCI), PhonePe processed 3,802.67 Cr UPI transactions in January 2023, accounting for over 47% of the total transaction count. Now what is the reason for this sheer dominance? I can point out few things which favored them among the other competitors:

• The app has added a range of financing services, including insurance policies and investment in tax-advantage funds.

• As Walmart took over Flipkart, it is one of the primary transaction methods for Flipkart's Festive sale.

• It is associated with Dream 11, a fantasy gaming platform which boosts its transaction.

• PhonePe provides higher cashback percentages than other UPI applications.