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UPI (Unified Payments Interface) has exploded in popularity for digital payments in India. Two apps dominate the UPI transactions space - PhonePe and Google Pay. According to recent statistics, these two payment apps account for a combined 87% of all UPI-based transactions in the country.
PhonePe, owned by Walmart, leads the pack with nearly 47% market share. The app has benefited from aggressive promotions and a user-friendly interface. Meanwhile, Google Pay commands 36% of the UPI payments segment. The seamless integration with Android smartphones and other Google apps has aided its rapid growth.
The other UPI apps lag far behind the top two. Amazon Pay, Paytm, and banks' own apps are trying to catch up but have not yet made a dent. The success of PhonePe and Google Pay is impressive, considering UPI as an interface is still relatively new in India. Their dominant position shows how two private apps have the power to transform payments in one of world's largest consumer markets. As UPI spreads further, we expect their combined share may cross 90% in coming years. This duopoly in the UPI world is set to continue.
