To build a cashless economy, the Indian government welcomed a band of digital payment platforms. These digital payment platforms used the UPI payment method to accelerate digital transformation. Furthermore, the nationwide lockdown imposed in 2020 due to the outbreak of COVID-19 skyrocketed digital payment as a safe and secure choice. The value of UPI transactions increased by 105% during the lockdown period.
According to Statista, in February 2021, India’s unified payments interfaces (UPI) operators recorded 2.3 billion online payment transactions worth more than four trillion rupees. Although this was a minor decline from January 2021, it still represented a year-over-year increase of nearly 70 percent in transaction volume. PhonePe has a 42.5 percent stake of the 2.3 billion transactions, while GooglePay has a 36 percent stake. Meanwhile, Paytm, the third-largest player, has a nearly 15% market share.