Paytm, a prominent company in India, is experiencing a decline in its participation in the Unified Payment Interface (UPI) network. FinTech accounted for 8.1% of total UPI transactions last month, dropping from 13% in January. Paytm, which previously held a significant share of UPI transactions, now ranks third behind Walmart-Backed TelephonePe and Google Pay.
The company’s struggles began in January when the Reserve Bank of India suspended business at Paytm Payments Bank due to compliance issues. The audit revealed breaches and oversight concerns, leading to concerns about the relationship between Paytm and its banking arm. Reports indicated a flow of money and data traffic between the two entities, raising accounting and oversight issues. The regulator also warned of possible conflicts of interest among executives overseeing both Paytm and Paytm Payments Bank.
Recently, reports emerged that the Indian conglomerate Adani is considering entering the payments and e-commerce sector. Adani is exploring opportunities to apply for a license to participate in the UPI network, as well as plans for a co-branded credit card and collaboration with India’s e-commerce platform, Open Network for Digital Commerce.
The competition for consumer attention in India’s digital payments landscape includes companies like Paytm, Google, PhonePe, and potentially Adani. Digital wallets have become the preferred payment method for over half of retail purchases in India, with 80% of digital wallet users opting for UPI.
Overall, Paytm’s decline in UPI transactions highlights the competitive nature of the digital payments market in India, with companies vying for market share and consumer loyalty. The potential entry of Adani adds another player to the mix, intensifying the competition among business conglomerates in the country.
Article Source
https://www.pymnts.com/digital-payments/2024/paytm-continues-to-lose-digital-payments-ground-to-google-and-walmart/
