Home / News / India /  PhonePe becomes first player to cross billion-transaction mark on UPI

Bengaluru: Digital payments major, PhonePe on Thursday said it has crossed a billion transactions on Unified Payments Interface (UPI) infrastructure in March, making it the first player in the country to reach this milestone.

A spokesperson at the Bengaluru-based company told Mint that PhonePe has overall clocked close to 1.3 billion transactions on its platform, across payment offerings of wallet, cards as well as UPI, last month.

“We crossed a billion UPI transactions in March. Last month, the total transactions on our platforms across the payment instruments of wallet, card and UPI that we offer - stood at 1.3 billion," added a PhonePe spokesperson.

PhonePe also claimed that its annual payment value run rate hit $388 billion in March.

PhonePe, which first achieved market leadership on UPI in December, last year, has seen its transaction count grow steadily, on the back of rising merchant payments. Overall UPI transactions processed by PhonePe grew from 902.03 million in December 2020 to 975.53 million in February 2021.

Mint had reported earlier that PhonePe’s focus on ramping up its merchant acceptance in the country, is fueling its growth in digital payments.

Even on UPI, merchant transactions have seen a 20% rise, between months of October 2020 and February 2021, crossing the billion-transaction mark. While peer-to-peer (P2P) transactions have seen a 4.5% growth during this period.

Earlier this month, PhonePe co-founder and chief executive Sameer Nigam told Mint that the company isn’t focussing on curtailing market share at present, in spite of a market cap imposed by National Payments Corp. of India (NPCI) on the UPI infrastructure.

“We believe our mission to digitize payments in India is a noble one, and we will not stop doing so until we are not allowed to do so anymore… We are not focusing on curtailing market share and will continue to add customers while ensuring acceptance of PhonePe among merchant partners," said Nigam.

Even Paytm Payments Bank has seen its overall UPI numbers grow from 244.94 million in October 2020 to 340.71 million in February 2021. However, banking outages leading to transaction decline, has impacted the growth of once market leader Google Pay.

In the past year, overall UPI volumes in the country have more than doubled, as transactions on the network touched 2.73 billion in March 2021. Transaction count on UPI stood at 1.25 billion, a year ago, in March 2020.

UPI transactions in the country also showed a 20% jump in count, last month, as compared to February 2021, when overall transactions stood at 2.29 billion.

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