Google Pay has clocked a whopping 240 million plus UPI (Unified Payments Interface) transactions in May, two bankers in the know told Economic Times. PhonePe came second followed by Paytm at 230 million and 200 million, respectively.
Data shared by the National Payments Corporation of India showed overall transactions fell 6% month on month at 733.5 million in May as opposed to 781 million in April.
Google Pay is a digital wallet platform and online payment system developed by Google to power in-app and tap-to-pay purchases on mobile devices, enabling users to make payments with Android phones, tablets or watches.
Meanwhile, government-run BHIM has recorded only 15.7 million transactions – a mere 2% of the total dealings. Unified Payments Interface is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.
In terms of value of transactions, Google Pay stood at Rs 55,000 crore followed by PhonePe at around Rs 44,000 crore and Paytm, around Rs 38,200 crore.
“There has been a fall in UPI transactions and two major reasons can be attributed to it, one is reduction in cash backs and major outages in a few banks’ back end which caused a jump in transaction failure,” a senior banker told Economic Times.
Among banks, Yes Bank, which issues UPI handles for PhonePe users, recorded the highest number of transactions at 241 million.
As per industry estimates, UPI payments by merchants still hover between 10% and 20% of the overall numbers. BharatPe are driving UPI payments in the offline space, along with Paytm and PhonePe.
Google Pay will be used for transactions between businesses and users, thereby expanding the reach of Google's payment service. Executives from the company have reached out to several businesses in India in recent months to coax them into coming on board, according to a TechCrunch report.