But the system's competitive dynamic is changing: Long-time market leader Paytm posted 133 million transactions in July, giving it a 16% share, while Google Pay and PhonePe posted around 300 million each. For context, in May, Paytm posted 200 million transactions, indicating that customers could be using the app for UPI payments less often.The features and access offered by Google Pay and PhonePe could be giving them an advantage when it comes to attracting transactions users.
But Google Pay's and PhonePe's respective pushes to build out their offerings seem to be working. Google Pay, which is the-downloaded fintech app in India and counts 25 million monthly users, has been bolstering its security and is rumored to be developing a new merchant-facing rewards offering. And PhonePe, owned by retail giant Flipkart, is currently seeking out $1 billion in funding as its owner looks to spin it out.