Since the Reserve Bank of India (RBI) crackdown, the share of fintech giant Paytm in the unified payments interface (UPI) market in India fell for a fourth straight month. According to the data released by the National Payments Corporation of India (NPCI), Paytm accounted for 8.1% of total UPI transactions in May, down from 13% in January.
As a setback for Paytm in January, the Reserve Bank of India ordered Paytm Payments Bank Ltd., a banking affiliate, to wind down operations. Since then, Paytm’s shares have fallen by about 55%.
The banking affiliate known as PPBL isn’t controlled by Paytm but is part of founder and Chief Executive Officer Vijay Shekhar Sharma’s fintech empire.
In May, the UPI network set a new record by processing 14.04 billion transactions, up from 13.3 billion in April. The data released by NPCI said that in terms of value, the UPI transactions amounted to Rs 20.45 lakh crore in May, compared to Rs 19.64 lakh crore in April. Notably, in April, net work saw a 1% decline to 13.3 billion transactions from 13.44 billion in March.
As per the NPCI data, the May figures were 49% up in volume and 39% up in value compared to the same month in 2023. May numbers were the highest in terms of value and volume since UPI turned operational in April 2016.