PhonePe vs. GPay: Indian digital payment giants up for a tussle

• Follow

New Delhi: The battle for supremacy between online payment giants PhonePe and Google Pay is heating up. According to recent data from the National Payments Corporation of India (NPCI), this is because new players enter the fray. In June, NPCI reported a staggering 13.88 billion transactions through the UPI network. This marks a significant milestone in India’s digital payment landscape.

PhonePe vs. Google Pay- What’s battle about?

During this period, PhonePe and Google Pay experienced a slight dip in their market shares. PhonePe’s share slipped from 48.67% in May to 48.37%, while Google Pay saw a decrease from 37.18% to 36.76%. Meanwhile, newer entrants like Axis Bank’s UPI app and the Navi app showed remarkable growth. As their transactions saw growth by 17% to 7.5 crore and 20% to 3.57 crore, respectively.

The emergence of Flipkart’s ‘super.money’ and Reliance’s JioFinance app further underscores the intensifying competition in the digital payment space. These developments signify not just increased competition but also a wave of innovation and diversification in payment services. This offers consumers a wider array of choices.

The digital payment market today has vast varieties. The consumers also stand to benefit from enhanced services and potential rewards. All this comes with use of different UPI payment apps. Especially for transactions on e-commerce platforms.

However, larger players must navigate stringent regulatory frameworks to avoid penalties and maintain market stability. Paytm’s market share declined from 13% earlier this year to 8% in June as a result of regulatory actions.

To stay ahead, companies like PhonePe and Google Pay will need to adapt their strategies. This includes fostering innovation, forging strategic partnerships, and prioritizing customer satisfaction. All this to retain their leadership positions in India’s dynamic digital payment ecosystem.

As the sector evolves, competition is set to drive additional advancements. Anything that shall benefit both consumers and the industry at large is the need.