The Indian digital payments ecosystem reached a new zenith in October, with the Unified Payments Interface (UPI) system recording an all-time high of 20.7 billion monthly transactions. This surge confirms UPI’s status as the backbone of consumer finance, driven primarily by the sustained, fierce competition between market leaders PhonePe and Google Pay.
The two dominant applications collectively controlled nearly 80% of the total volume and value of customer-initiated UPI transactions processed among the top 10 apps during the month.
The Leaders: PhonePe and Google Pay
PhonePe firmly maintained its top position, setting a new individual record with 9,412.07 million (9.4 billion) transactions. This massive volume secured a market share of 45.47% by volume. In terms of monetary value, PhonePe processed an impressive ₹13,06,401.90 crore, commanding 47.88% of the total value of ₹27,27,790.68 crore.
Following closely, Google Pay recorded 7,165.80 million (7.1 billion) transactions, giving it a strong 34.62% share of the total volume. The app processed ₹9,54,186.10 crore in value, translating to a substantial 34.98% market share.
For context, the overall UPI platform surpassed its previous record of 20.1 billion monthly transactions set in August, underscoring the accelerating adoption rate of the digital payment method.
The Challengers and Niche Players
The field remains highly concentrated after the top two. Paytm was a distant third, registering 1,522.78 million (1.5 billion) transactions, which accounts for 7.36% of the total volume. Its processed value stood at ₹1,67,177.27 crore, capturing 6.13% of the total value.
Further down the ranking, Navi and Super.money showed moderate activity. Navi recorded 574.30 million transactions (2.77% share by volume) and achieved a 9% increase in volume, while Super.money processed 264.79 million transactions (1.28% share) but saw a more modest 3% monthly increase.
Among the smaller competitors, CRED stood out for its high-value transactions. Though it processed only 157.99 million transactions, its value reached ₹62,438.03 crore, contributing a relatively high 2.29% share of the total value. This suggests a continued trend of CRED catering to higher-value payments, likely tied to utility and card bill payments. BHIM and Amazon Pay rounded out the top apps with 125.70 million and 94.32 million transactions, respectively, each holding less than 1% of the overall volume share.
Consumer Spending Trends: Groceries Lead the Way
According to data from the National Payments Corporation of India (NPCI), UPI’s dominance is most pronounced in essential and everyday spending categories:
| Category | Monthly Volume (Millions) | Value (₹ Crore) |
|---|---|---|
| Groceries and Supermarkets | 3,273.16 | 76,073 |
| Fast Food Outlets | 1,357.89 | 16,798 |
| Restaurants | 1,190.63 | 20,842 |
| Telecom Services | 867.86 | 22,169 |
| Service Stations (Fuel) | 657.36 | 38,072 |
A notable emerging category is Digital Gold, which saw a significant month-on-month rise, climbing to 115.95 million transactions worth ₹2,290.36 crore in October, up from 103.19 million transactions in September. This indicates growing consumer comfort with asset-based digital transactions.
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