According to data released by the National Payments Corporation of India, Paytm accounted for 8.1% of all UPI transactions in May, down from 13% in January.
For the fourth month in a row, Paytm’s share of the unified payments interface (UPI) market in India decreased as the pioneer of the fintech industry struggles to recover from a regulatory setback.
Paytm accounted for 8.1% of all UPI transactions in May, down from 13% in January, according to data released by the National Payments Corporation of India.
The company was rocked in January when the Reserve Bank of India ordered Paytm Payments Bank Ltd., an affiliate bank, to cease operations. Its stock has decreased by 55% since then.
The financial auxiliary known as PPBL is a piece of Vijay Shekhar Sharma’s fintech domain, not Paytm, and it isn’t influenced quite a bit by.
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UPI is a system that connects banks with fintech apps like Paytm, PhonePe, and Google Pay and allows users to make instant money transfers. Paytm’s UPI market share has decreased as a result of the RBI’s crackdown. The state-backed NPCI runs it. The UPI network processed 14.04 billion transactions in May, a record number and an increase of 5.5% from the previous month.
In May, Walmart Inc.’s PhonePe maintained its market dominance with a share of 49 percent, while Alphabet’s Google Pay held a share of 37 percent.
Since the RBI’s order to stabilize the ship, new alliances with some of India’s top lenders, such as Axis Bank Ltd., HDFC Bank Ltd., and State Bank of India Ltd., have been made. These alliances will help Paytm with instant money transfers that were previously handled by its banking affiliate. Paytm’s UPI market share has decreased as a result of the RBI’s crackdown. Bloomberg News reached the organization for input yet gotten no reaction.
“We expect near-term financial impact to our revenue and profitability, due to disruptions faced in our business in Q4,” Sharma stated in Paytm’s most recent earnings filing. `
