UPI is under threat due to duopoly of PhonePe and Google Pay companies like paytm bhim amazon and whatsapp are far behind
PhonePe and Google Pay: UPI has made a radical change in the payment system. Just a few years ago, sending money was a headache, but now you can send money anywhere and anytime in a few seconds. The success of UPI is such that it is being accepted easily even in small shops in villages. But, UPI, which came into existence 7 years ago, is facing such a threat, despite knowing about it, no solution has been found yet. This threat is in the form of PhonePe and Google Pay. Let us know about this in detail.
PhonePe and Google Pay have 85 percent market share
Actually, PhonePe and Google Pay are two big companies in the digital payment sector. They have about 85 percent market share. These two companies have created their duopoly in the digital payment sector. No other company is able to make its place in their competition. Paytm stood firmly in front of them. But, after the ban on Paytm Payments Bank by RBI, its position has become very weak. Since then, a fear has arisen that if any such problem ever arises with PhonePe or Google Pay, the situation will become very serious.
Both companies occupying UPI network are under foreign control.
UPI was launched in September 2017. During that time the number of UPI transactions was 0.4 billion, which has increased to more than 15 billion in September 2024. Besides, the transaction figure has also crossed Rs 140 lakh crore. More than 30 crore people and 5 crore merchants are using it. Both the companies occupying such a huge UPI network are under foreign control. The market share of PhonePe is about 48.36 percent, that of Google Pay is 37.3 percent and that of Paytm is 7.2 percent. The condition of government UPI app BHIM is very bad. Its market share is less than 1 percent.
Companies are not taking any steps to reduce market share
Due to the presence of two such big players, no one else is getting a chance. Amazon and WhatsApp also entered this sector but they delayed a lot. Due to this, he is not involved in the race itself. Due to all these reasons, National Payments Corporation of India (NPCI), the organization managing UPI, started making changes in the system four years ago. NPCI had also fixed a maximum market share cap of 30 percent. A deadline of two years was fixed for this. After this, it was again postponed for 2 years till December 31, 2024. Now it is being said that this deadline will also be pushed forward. What is even more surprising is that in these 4 years no company has done anything to reduce its market share.
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