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Bengaluru: Fintech startup PhonePe, which pipped Google Pay to emerge as the top payments intermediary by volumes on the Unified Payments Interface (UPI) last December, will continue to add new users, despite the National Payments Corp. of India (NPCI) mandating 30% market cap for digital payment firms on UPI.
Chief executive officer Sameer Nigam said it is working to ensure more merchant partners opt for PhonePe over rival payments firms.
“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.”
In November, NPCI announced that a 30% cap will be imposed on transaction volumes for payment companies, effective 1 January, and third-party payment providers will have two years to comply with the directive.
PhonePe processed close to 975.5 million transactions in February, to widen the gap with Google Pay by 147.6 million transactions. During the month, 54% of UPI transactions on PhonePe were by merchant partners, with the highest success rate among payments firms, said Nigam.
“Based on the NPCI data, we have the highest end-to-end success rates in UPI payments and we believe that over time the product always wins and we are starting to see the early signals of user preference.”
In February, PhonePe commanded 42% of UPI payments, while Google Pay, which had 43% market share in November was down to 36%.
PhonePe has nearly 280 million registered users, with 110 million monthly active users, the company said. It has added close to 6.5 million merchants in the last 8 months and claims to have 18 million merchant partners in India.
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