Over the past few months, CRED and WhatsApp Pay have been among the top gainers, in terms of UPI transaction volume and value, given their rapid development based on rewarding users with cashback. WhatsApp Pay recorded the largest increase in transaction value in November 2022, increasing by 8.6% to Rs 769.29 Cr from Rs 708.56 Cr, while CRED's transaction value decreased by 8.2% to Rs 18,599.72 Cr from Rs 20,259.70 Cr in October 2022. WhatsApp Pay was the biggest gainer in terms of transaction value.
UPI Records a Slow November
Numerous UPI third-party application providers (TPAPs) reported a fall in transaction value as the UPI transaction value experienced an unusual 1.73% month-over-month (MoM) decline in November 2022. According to a report published earlier this month by Inc42, the National Payments Corporation of India (NPCI) registered 730 Cr transactions in November 2022, totalling Rs 11.91 Lakh Cr. Since the transaction value decreased by 2.60% in June 2022, it was the first MoM decline since then. However, the transaction volume was marginally improved in November.
Over the past month, PhonePe, Google Pay, and Paytm all saw a decline in transaction value, with transactions falling by 0.4%, 2.7%, and 3.6%, respectively. In terms of transaction volume and value, these apps nevertheless remained to rule the UPI industry. PhonePe maintained its market domination in terms of transaction value, holding close to half of the entire market share for UPI transactions. Concerning the number of UPI transactions throughout the month, Google Pay and Paytm were in second and third place, respectively. 95% of UPI transactions in November were made using the top three apps.
CRED was the greatest gainer in terms of transaction volume, as the number of transactions increased by 20.4% from 2.13 crore in October 2022 to 2.56 crore in November. The second-placed app was WhatsApp Pay, with its UPI transaction volume rising 10.4% from 83.8 Lakh in October to 92.5 Lakh in November.
NPCI last week extended the UPI market share cap compliance date by two years to December 31, 2024, citing, among other things, the existing and possible future growth of the digital payment mechanism. Market giants PhonePe and Google Pay will benefit from this decision, although Paytm and other competitors were hoping the market cap would be enforced so they could gain a bigger market share.