India’s UPI Market Gets Crowded—But Two Players Still Rule
April 21, 2025
The digital payments space in India is booming, and PhonePe and Google Pay have emerged as clear incumbents. They together have over 80% of the UPI market share, which is significant in forming a duopoly in the country’s fintech arena.
What is UPI
As introduced by the National Payments Corporation of India (NPCI), UPI is a near-instantaneous method to transfer money between bank accounts using mobile apps. PhonePe and Google Pay are among the many apps that support UPI transactions but the two have led the sector in terms of users and transactions. Their success and usage is due mainly to their usability, trust as established brand names, and the diverse services that derive from the applications’ integrations.
According to most recent data, PhonePe and Google Pay activity accounted for more than 80% of UPI transactions in India. The two applications have become critical to digital commerce and everyday life in India.
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Concerns of Market Duopoly
The successful market penetration and fit of PhonePe and Google Pay speaks to the potential for strong innovation in different sectors, but also highlights market concerns of concentrated ownership and monopolistic behavior. A duopoly of this scale could also obscure new entrants and limit consumer options.
What’s Next
Regulators and other stakeholders are observing the evolution of UPI payment processing with regards to factors that help spur other apps to evolve and develop and to ensure competition remains fair. In the meantime, users will continue to realize the benefits of speed and convenience through apps such as PhonePe and Google Pay.
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