Fintech major’s portion of total UPI transactions drops to 8.1% in May due to RBI crackdown
NEW DELHI: In recent months, Paytm, a frontrunner in India’s fintech sector, has experienced a gradual decline in its share of the Unified Payments Interface (UPI) market.
According to data from the National Payments Corporation of India, Paytm’s portion of total UPI transactions dropped to 8.1 per cent in May, marking the fourth consecutive month of decline from its peak of 13 per cent in January.
The company faced a significant setback earlier in the year when the Reserve Bank of India directed its banking affiliate, Paytm Payments Bank Ltd, to cease operations.
As a consequence, Paytm’s stock has witnessed a notable decline of approximately 55 per cent since the regulatory ruling.
UPI serves as a pivotal platform that facilitates instant money transfers by bridging banks and popular fintech applications like Paytm, PhonePe, and Google Pay. Despite Paytm’s decline, the UPI network demonstrated robust growth by processing a record-breaking 14.04 billion transactions in May, indicating a 5.5 per cent increase compared to the previous month.
