Indian parliamentary panel red-flags PhonePe and Google Pay

Monday 12 February 2024 10:29 CET | News

An Indian parliamentary panel has released a report in order to red-flag PhonePe and Google Pay, which currently process 83% of India’s UPI payments. 

Following this announcement, the Indian parliamentary panel has launched a 58-page report in which it urges the government of the region to optimise the manner in which domestic fintech players are enabled to provide alternatives to the Walmart-backed PhonePe and Google Pay applications. Both features currently command more than 83% of the country’s overall fast-growing digital payments market. 

The report also includes a series of new recommendations and solutions, aiming to meet the needs, preferences, and demands of customers and individuals in the area, while also remaining compliant with the regulations and laws of the region. 


An Indian parliamentary panel has released a report in order to red-flag PhonePe and Google Pay, which currently process 83% of India’s UPI payments.

More information on the announcement

The report was released at a time when Paytm, a payment firm in the region of India, is reportedly reeling from a clampdown on its payment bank business. The Reserve Bank of India’s directive that was launched recently also required Paytm to cease operations of its Paytm Payment Bank, which was developed in order to process most of the transactions for the financial services company. This overall disruption at Paytm is expected to cause the payment application’s market share in UPI to fall further to Google Pay and PhonePe. 

PhonePe commanded approximately 46.91% of the UPI market share by volume during the period between October 2023 and November 2023, as mentioned in the report by the parliamentary committee on communications and IT. At the same time, Google Pay held a market share of 36.39% during the same month. The market share by volume of indigenous BHMI UPI represents only 0.22%, as PhonePe and Google Pay also possess a large market share of UPI by transaction value. 

The National Payment Corporation of India (NCPI) represents a unit of the Indian Central Bank, RBI, and it also expressed similar concerns about the situation present in the mobile payments market in the region of South Asia. The financial institution previously proposed the process of enforcing a check on the market share for players, aiming to ensure that no single player should process more than 30% of the UPI transactions in the period of one month. 

At the same time, the NPCI extended the deadline for the new check by the end of 2024. Google Pay and PhonePe assumed less than 80% market share at the time when the National Payment Corporation of India originally proposed a check back in 2020. 

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Keywords: regulation, digital payments, online payments, mobile payments, payments , UPI, ecommerce
Categories: Payments & Commerce
Companies: Google Pay, PhonePe
Countries: India
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Payments & Commerce

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