UPI battlefield: Google Pay beats Paytm and PhonePe at both value and volume

Surpassing all records in terms of UPI transaction volume and Value, Google Pay has dethroned its arch-rivals Paytm and PhonePe to become the largest contributor of NPCI-owned unified payment railroad.

The Google-owned payments app has recorded 240 million transactions amounting to Rs 55,000 crore in May whereas PhonePe and Paytm registered 230 million and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively.

In the last three months, Google Pay has increased its adoption from 220-230 million monthly transactions to 240 million while PhonePe and Paytm have been gradually losing their marketshare.

In April, PhonePe recorded 258 million transactions, on the other hand, Google Pay and Paytm’s monthly UPI transaction stood between 230 million to 240 million.

Google Pay alone contributed over 32% in overall 733 million UPI transactions happened in May. Combinedly, these top three apps along with government-promoted BHIM count 93% of the UPI transactions market.

This is a big achievement for any offshore company that has achieved a user base of 45 million within 18 months of launch and fighting against incumbents like Alibaba-backed Paytm and Flipkart-owned PhonePe.

Currently, Google Pay is accepted at over 2,000 online merchants such as foodtech, travel, movie or event tickets, including trading, and investments. Besides, the firm has also forayed into wealth management space and collaborated with Pine Labs to boost its offline transaction.

Apart from peer-to-peer transaction, the firm is looking to compete PhonePe in terms of merchant payments that only contribute between 10% and 20% of the overall numbers.

In coming months, WhatsApp may launch its UPI-based payments service – WhatsApp Pay in India. With two overseas behemoths in UPI ecosystem, it would become more difficult for Paytm and PhonePe to compete against them.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/06/google-pay-paytm-phonepe-upi-transaction-share/

Google Pay continues lead over Paytm and PhonePe in UPI transaction value

Google’s UPI-based payment app Google Pay has witnessed a remarkable growth ever since its launch in 2017 in India. In about 20 months, it has achieved a stellar growth giving its main rivals PhonePe and Paytm a run for their money.

According to transaction data of April, Google Pay did transactions worth Rs 49,700 crore way more than its competitors PhonePe and Paytm. PhonePe was at second number with a transaction value of Rs 42,610 crore whereas Paytm registered transactions worth Rs 35,500 crore.

All three together accounted for about 90% of the Rs 1.42 lakh crore worth transactionsreported last month. Govt-backed BHIM accounted for merely 15 million transactions worth Rs 6,600 crore during the same period.

This is almost 14% rise in Google Pay transactions in comparison to transactions value in March, as per Bloomberg report.

Interestingly, Google Pay recorded UPI transactions worth Rs 43,000-Rs 45,000 crore in March. Both PhonePe and Paytm are said to have done transactions worth Rs 31,000-32,000 crore each.

However, in terms of volume of transaction, PhonePe leads with 258 million transactions. Google Pay and Paytm are estimated to do transaction between 230 million to 240 million.

As per the last figure provided by Google Pay in March, it has about the user base of 45 million. PhonePe and Paytm have not revealed their exact user base. Earlier, in a tweet, Paytm founder Vijay Shekhar Sharma said there are about 94 million KYC wallets and 371 million total users on its platform.

Meanwhile, the actual numbers of active users and transactions volume are still unknown.

As per observers in the payment space, Google Pay chat enabled payment service is easy to use. And its promotional and cashback offerings have helped it attract more users in very less time.

Currently, Google Pay is accepted at over 2,000 online merchants such as foodtech, travel, movie or event tickets, including trading, and investments.

It has also been testing new products in wealth management space and collaborated with Pine Labs to boost its offline transaction.

As per Sensor Tower data, Google Pay had claimed a top slot in terms of downloads recorded by fintech apps globally. It was downloaded over 327 million times, with over 6X lead from second most downloaded fintech app.

In the last few months, global payer like Amazon has also been betting big to get major share in India payment space. With reports of WhatsApp Pay to be launched in about in next two months, the payment space in the country is poised to witness a dynamic change.

Who will be at forefront or winners in this payment battle, is a matter worth observing.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/05/google-pay-lead-phonepe-paytm/

PhonePe seeks $8 billion value with $1 billion fund-raise

After Flipkart’s board gave approval to hive off PhonePe, paving the way for a solo fund-raise, the payments platform is in talks to raise about $1 billion from marquee investors like China’s Tencent and Tiger Global, three people aware of the development said.

Tencent and Tiger Global had backed Flipkart, which acquired PhonePe three years ago. However, the outcome of the talks would depend on the valuation at which these investors are willing to put money in the firm. PhonePe is looking at a valuation of at least $7-8 billion and will not take transaction forward at a lower level.

“Valuation can make or break these talks. PhonePe is in discussions with Tencent as it could leverage a strategic investor willing to back it for the long-term, especially to fight well capitalised Paytm,” a person aware of the discussions said. This person added it could take another two-three months for the investments talks to close formally.

For Walmart, which would remain a large shareholder in the case of new investors coming on-board, PhonePe’s valuation will be crucial since it bought a 77% stake in Flipkart for $16 billion, at a steep valuation of $22 billion. “Board will have to approve PhonePe’s valuation for the independent fund-raise,” the person mentioned above added.

This is not the first time PhonePe has explored independent funding as Nigam-led PhonePe had held talks for investments from strategic players like PayPal in 2017. Back then, too, valuation emerged as a deal-breaker and those talks did not result in an investment. However, the discussions with the new investors are more realistic to come through, sources added.

A PhonePe spokesperson did not respond to an email query by TOI. Tiger Global and Tencent did not respond to TOI’s queries either.

PhonePe, before Walmart acquired Flipkart, got a capital commitment of $500 million in late 2017. Little over half of this capital has been pumped into PhonePe, sources added.

While PhonePe has access to the rest of the capital pool committed by parent Flipkart, it needs new funds to feed its high-spend expansion spree that started in the past few months.

PhonePe has got well-capitalised rivals such as SoftBank and Alibaba-backed Paytm, Google Pay, which are fighting for local payments market. Impending entry of WhatsApp could put further pressure on PhonePe and its rivals. A person aware of the matter said PhonePe’s annual spend for 2019 is said to be in the range of $150-170 million. Its rival Paytm too is stitching up a deal that could see it raising $1-2 billion.

As PhonePe plans to continue its offline payments network expansion and enter new business-like wealth management and lending, it will be crucial that it has adequate capital to spend on existing and new businesses.

Nepal bans Alipay, WeChat Pay

Kathmandu: Nepal‘s central bank has banned popular Chinese digital wallets Alipay and WeChat, an official said Tuesday, fearing loss of foreign currency earnings from thousands of Chinese tourists that visit the country. Nepal Rastra Bank issued a notice on Monday, banning the use of the Chinese digital payment platforms popularly used in hotels, restaurants and shops in tourist areas, especially in Chinese-run businesses.

Laxmi Prapanna Niroula, spokesman for Nepal’s central bank said that using the platforms in the country was illegal without the bank’s authorisation.

“We have enforced a ban on Alipay and WeChat Pay because the country is losing foreign currency earnings through its usage. Action will be taken if anyone is found using the platforms,” Niroula told AFP.

Niroula said currently there is no record of how many transactions have taken place through the platforms as they are not recorded in Nepal.

Alipay, started by e-commerce giant Alibaba and owned by its affiliate Ant Financial, and WeChat Pay, built into Tencent’s popular messaging service, have hundreds of millions of users between them and are China’s dominant payment platforms.

Over 150,000 Chinese tourists visited Nepal last year, helping it reach a landmark of welcoming over a million tourists for the first time.

Tourism is a major revenue earner for impoverished Nepal, home to eight of the world’s 14 peaks over 8,000 metres.

Tourism contributed 7.8 percent to Nepal’s GDP in 2017, creating over a million jobs, according to the World Travel and Tourism Council.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/nepal-bans-alipay-wechat-pay/69444581

Mobile wallet transaction volumes 12% rise in March

After five months of an interval, mobile wallet-based transactions have witnessed a slight rise in March this year.

About 384.89 million transactions worth Rs 15,999 crore were recorded in March, which is an increase of 19% in transactions volume from last September and 11.55% from the preceding month, as per RBI data.

Around 324.16 million transactions amounting to Rs 15,102 crore took place in September. In February, close to 345 million transactions worth Rs 14,279 crore took place.

The rise is attributed to the year-end occurrence when the volume of transactions rises. India has seen a spurt in digital transactions since November 2016, when the government announced demonetisation of all Rs 500 and Rs 1000 banknotes.

In 2018-19, as per RBI, there has been 30% Year-on-Year jump in value and 37% growth in the volume of transactions in compared to 2017-18.

In September last year, mobile wallets witnessed most of the decline after the SC ruling on Aadhaar. The apex court barred private entities to use Aadhaar for electronic know your customer (e-KYC) to sign up a new customer.

This led to about 6-time rise in customer verification cost for mobile wallets.  This raised big concern over their completion of customer verification.

In October, despite the SC ruling, mobile wallets recorded around 368.45 Mn transactions amounting to Rs 18,786 Cr.

Transactions through mobile wallets fell in November as mobile wallet companies had to stop using Aadhaar for electronic know your customer (e-KYC) to enrol new customers.

Meanwhile, RBI had asked mobile wallets to complete the process by end of February 2019.

However, during the same period, UPI, which was launched in August 2016, witnessed sustain increase in transactions.

It hit a record high of 799.54 million transactions, 93K more transactions than when it was launched, worth Rs 1.33 trillion in March.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoftdeveloped a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/05/mobile-wallet-transactions-rise-in-march/

Government to make QR code-based payment option compulsory for shops

Digital Payment

To promote digital payment at a wide scale, the Indian government is planning to mandate a quick response (QR) code based payment method option using Unified Payments Interface (UPI) at all shops.

The GST council has already given a go-ahead to the proposal. The govt has for the project roped in NPCI to work on a necessary mechanism to launch it nationally.

The move will also provide GST benefit to both shops and consumers, according to govt official quoted by TOI report.

The prime idea behind the proposal of mandatory QR code-based payment is to make digital payment more popular and bring a behavioral change in the ecosystem. The advantages of QR code payment are, it allows a consumer to buy goods and services without the need to swipe plastic cards.

The process also records necessary information related to the transactions. Data loss and security breach are minimized. The QR code may also be introduced on invoices, added the sources.

In terms of mobile payment in the world, China has emerged as a leader. Chinese payment firms such as Wechat and Alipay widely use this mode payment. In China, it has beenreportedly used while tipping at restaurants, receive cash gifts at weddings and collecting alms by beggars.

This is largely driven by the large adoption of mobile payments. It has changed the social habits of the country. Many countries like Singapore and Myanmar in the world are fastly adopting this mode of digital payment.

The QR code payment is reported to have witnessed exponential growth in consumer adoption in ASEAN countries.

Developed by Denso Wave in Japan, QR code is said to store over 4000 alphanumeric characters. Initially, it was used for tracking components in the automotive industry.

It is cost effective in comparison to POS machine and mPOS machine costs. As per an estimate, it costs about $1 to put up a laminated QR code sign at a shop.

wallet script - rpay

Looking forward to develop a digital payment app? Then Our RPay is the right choice. We have talented designers and developers to turn your ideas into an excellent solution

Source : https://entrackr.com/2019/05/govt-qr-code-based-payment-must/

Google Pay is ahead of Paytm and PhonePe in UPI transaction value

Grabbing the lion’s share of UPI transaction has become imperative and priority for Paytm, PhonePe, Google Pay, BHIM and other UPI-enabled payments apps.

While government-promoted BHIM has not been able to take off, private players have grabbed the opportunity with freebies, discounts, and other luring features to gather more UPI transactions on their platform.

Early adopters like PhonePe and Paytm have been maintaining their mojo until tech giant’s Google UPI app – Google Pay silently started to eat up their market share with a new avatar (previously, it was known as Tez).

Up from 25 million monthly active users in September 2018 to 45 million monthly active users in March 2019, Google Pay is now neck to neck with Paytm and PhonePe’s volume with around 225 million UPI transaction.

In February, media reports suggested that PhonePe and Google Pay were doing around 220 million transactions each while Paytm was leading the pack with 225 million transactions.

Interestingly, Google Pay recorded UPI transactions worth Rs 43,000-Rs 45,000 crore in March. On the contrary, PhonePe and Paytm are said to have done transactions worth Rs 31,000-32,000 crore each.

An ET report also added that PhonePe is marginally ahead of Paytm in terms of the value of transactions.

This essentially means Google Pay is quite close to Paytm in terms of volume and way ahead of the Alibaba-backed company in terms of value.

Google in its official statement also said that it hit $81 billion (or Rs 5.7 lakh crore) annualised transaction run-rate in March.

In terms of average transaction value, Google Pay’s ATV is higher by 50 per cent compared to PhonePe and Paytm. According to recent data revealed by BharatPe, Google’s Pay ATV hovers around $4.6 while PhonePe and Paytm recorded their ATV as $2.6 and $2.4 respectively.

Till date, Google Pay is accepted at over 2,000 online merchants such as foodtech, travel, movie/event tickets, and even trading and investments. To gather more users, the tech giant is reportedly spending $12-15 million on a monthly basis.

Apart from P2P transfer and retail payments, Google Pay is also targeting its arch rivals through wealth management products like digital gold buying. It may enter into a full stack wealth management business and integrate other payments use cases to drive more transactions and build loyalty amongst customers.

Of late, Google has partnered with Pine Labs to boost its offline transaction where PhonePe is the market leader. The collaboration with Pine Labs will give access to over 3,30,000 point-of-sale terminals in over 3000 towns.

wallet script - rpay

Looking forward to develop a digital payment app? Then Our RPay is the right choice. We have talented designers and developers to turn your ideas into an excellent solution

Source : https://entrackr.com/2019/04/google-pay-upi-transaction-march/

Xiaomi launches UPI-powered Mi Pay in beta

Unified Payment Interface

Unified Payment Interface (UPI) has turned out to be a battleground for global and local heavyweights. Besides Paytm, Google, PhonePe, TrueCaller and MobiKwik, likes of WhatsApp, Jio, Amazon among several others want a slice of fledgling digital payments market that set to grow to $1 trillion by 2023.

Xiaomi (Mi)

Xiaomi is no exception. Joining the league of aforementioned firms, smartphone brand Xiaomi is also tapping into consumer payment space in India with UPI. The company is getting closer to launch Mi Pay for masses as it received approval from NPCI.

Currently, Xiaomi is testing Mi Pay in beta (link) with ICICI and PayU. “NPCI has cleared Mi Pay for large group usage, due to which its beta testing is going live, and soon it will be available for all MIUI users,” mentioned a community post in Mi forum.

National Payments Corporation of India (NPCI)

Unlike WhatsApp (restricted to one million users), NPCI has given nod to Xiaomi for large group usage. Mi Pay will let users transfer fund, execute payments for several use cases including bill/recharge, water, and electricity bill using UPI framework.

It’s worth noting that Xiaomi is also planning to launch NBFC ‘Xiaomi Financial Services India’ and seeking RBI licence for it. The company also leveraged its investee KrazyBee to launch micro-lending platform – CreditBee.

UPI has been growing at a fast pace ever since its launch in November 2016. Last month, NPCI-owned digital payments railroad had crossed 500 million transactionmark.

At present, Paytm dominates the UPI ecosystem followed by PhonePe and Google Pay. In October, the SoftBank-backed firm had claimed 37 per cent of overall UPI transaction.

Meanwhile, Jio is also awaiting approval from NPCI for UPI service. Its entry along with WhatsApp will heat up competition in the segment.

With several behemoths have been competing in UPI ecosystem while some are awaiting regulator clearance, the road for Mi Pay won’t be smooth. Going forward, it would be interesting to watch how stalwarts fight for supremacy in the digital payments landscape.

wallet script - rpay

As E Wallet assumes a forceful job in the present business world, Roamsoft built up a digital wallet platform, RPay with mobile amicable highlights, very much archived API s, modules that suits all major Ecommerce platforms.

Source : https://entrackr.com/2018/12/xiaomi-upi-mi-pay/