Bengaluru: Google Pay transactions on the Unified Payments Interface (UPI) network have not registered growth over the past three months, according to data from the National Payments Corporation of India (NPCI).
Google Pay registered 857.8 million transactions by October 2020 and had reached a peak of 960 million transactions in November, ordering a market share of 43% in UPI payments. The platform has seen a steady decline in transactions since then. 854.4 million transactions were recorded in December, 853.5 million in January, and 827.86 million in February.
The rise of Google Pay in November could be attributed to the ‘Go India’ game that was operating in its area, which included earning points after paying the UPI, said three people familiar with the matter.
Google’s market share also dropped to 36% in February 2021 from 43% in November 2020.
The slide is mainly due to the demise of top banks, as well as Google’s lack of focus on paying retailers, which gives market leaders FonPe and Paytm a competitive advantage, said the aforementioned people.
Google Pay’s peer or P2P transaction on UPI grew by only 4.5%, between October and February, NPCI data shows. Peer-to-peer transactions or P2M transactions, however, have seen a 20% growth over the same period. P2P transactions are between users, and P2M transactions are where the user makes a payment to a merchant registered in the UPI.
There is no increase in UPI payments on Google Pay in December-Feb
“There can be almost 80-90% customer clashes between the top 3 UPI players including Google Pay, PhonePe, and Paytm, which means that the top three compete for the same customers, reducing the area of ”‹”‹peer growth – peer (P2P) payments. Therefore, the next phase of UPI growth will come from increasing cases of merchant use and acceptance, “said one of the people mentioned above, requesting anonymity.
“Google Pay has experienced a decline due to bankruptcy in December and January and that has reduced consumer confidence on the platform as transactions began to slow down. However, it is now clear that Google Pay is also experiencing a growing problem with retailers and users, “said a second person.
Google Pay did not answer questions.
phones and Paytm competitors in recent months have been investing heavily in expanding their vendor base to expand the UPI acceptance network. “The focus and popularity of Google Pay is especially on urban users, where UPI payments can soon become a market full of growth,” said a third party.
NPCI chief executive Dilip Asbe at an event last week acknowledged that the decline in transactions was increasing in the UPI network between October and December due to technical integration by many banks creating inefficiency. This has been resolved and the industry can expect better UPI approval rates, Asbe said.
PhonePe analyzed approximately 975.5 million transactions in February 2021 and extended the gap by competing with Google Pay for 147.6 million transactions.
PhonePe, which took the market leadership from Google Pay to UPI last December, added nearly 7 million merchants over the past eight months. It also said more than 54% of transactions on its network in February were retailer payments. Paytm, which increased its sales from 244.94 million in October to 340 million in February, commended the technology infrastructure for its growth.
“Our technical team, consisting of industry-leading minds, works around the clock to provide seamless and practical information to our users and business partners. We have seen the rapid adoption of our UPI payment services nationwide, “said Satish Gupta, chief executive officer of Paytm Payments Bank Ltd.