North India Statesman
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The impact of the recent action taken by RBI on Paytm Payment Bank is now clearly visible on the business of Paytm. Recent data shows That Paytm's share in the UPI market has declined. This means that people are no longer using Paytm for UPI transactions like before.
One97 Communications Ltd (OCL), the parent company of the upcoming Paytm app, once a fintech leader, has seen its UPI market share decline, according to National Payments Corporation of India (NPCI) data. The share fell to nine percent in March, its lowest level in four years.
In February, when the Reserve Bank imposed strict restrictions on Paytm's subsidiary Paytm Payments Bank Ltd, its market share fell to 11 per cent from the previous month. Let us tell you that NPCI has been sharing the volume and value of UPI app transactions since April 2020. This is Paytm's lowest market share since then.
This will affect mobile payments
The transaction value market share of the mobile payment app has declined after the crackdown on Paytm Payments Bank. It has come down to 6.7 percent. This figure is also the lowest in the last years.
Paytm's market share in terms of transaction volume was around 11-12 percent during 2020 and 2021. Which the company gradually managed to increase to 13 percent. Which has now reduced to only nine percent. During the years 2018 and 2019, the company had about 40 percent market share in UPI. However, the focus remained on wallet, which later proved costly when PhonePe and Google Pay pushed UPI. Since March 15, Paytm has been operating as a third-party app like its rivals PhonePe and Google Pay.
