Paytm UPI payments drop in February following RBI action
Paytm Payments Bank on January 31 impacted One 97 Communication-run Paytm’s UPI payments business in February which registered a 7.6% fall in transactions over the previous month.
According to data shared by National Payments Corporation of India (NPCI), Paytm reported around 1.3 billion transactions on UPI, a 7.6% drop from 1.4 billion in January.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitMITMIT Technology Leadership and InnovationVisitIts share of UPI payments in February reduced to less than 11%, from around 11.8% the month before. The fintech has seen its share declining, with its share in the market being 12.8% in August last year.
In February, a shorter month, the overall UPI volumes stood at 12.1 billion compared to 12.2 billion in January.
At a time when Paytm saw its volumes drop, two major competitors PhonePe and Google Pay saw a sharp uptick in transactions. In February, PhonePe reported 6.1 billion transactions, while Google Pay reported 4.7 billion UPI payments. Both saw their numbers jump 7.7% and 7.9% respectively.
Industry insiders highlighted some trends around certain transactions moving away from Paytm to its two major rivals. The gains of the other players in this space have been negligible, data shows.
On January 31, the RBI asked Paytm Payments Bank to halt basic banking services by the end of February, which was pushed to March 15. RBI has
