As India’s digital payments ecosystem continues to evolve rapidly, fintech giant PhonePe has maintained its dominance in the Unified Payments Interface (UPI) space. According to recent data, PhonePe processed a staggering 864.7 crore UPI transactions in March 2025, accounting for 47.25% of the total UPI transaction volume in the country.
Although this marked a marginal dip of 0.28% from its February transaction count of 867.1 crore, the Walmart-backed fintech player continues to hold a significant lead over its competitors in terms of both volume and value.
PhonePe Processes Transactions Worth INR 12.57 Lakh Crore
In addition to leading in transaction volume, PhonePe also emerged as the market leader in terms of transaction value. The platform processed transactions worth INR 12.57 lakh crore, contributing a massive 50.74% to the total UPI transaction value in March 2025. This solidifies PhonePe’s position as not just a preferred choice for small peer-to-peer transactions but also for higher-value transfers across the board.
The numbers are especially significant as PhonePe prepares for its much-anticipated Initial Public Offering (IPO). Its consistent performance and market leadership could bolster investor confidence and valuations as it heads towards the public markets.
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Google Pay Retains Second Spot
Closely following PhonePe is Google Pay, which handled 659.6 crore transactions in March, contributing to 36.04% of the total UPI transaction volume. In terms of transaction value, Google Pay processed INR 8.66 lakh crore, representing 34.98% of the total UPI value for the month.
While the gap between the two fintech leaders is significant, Google Pay remains a formidable player in the space, particularly among urban users and Android users integrated into Google’s ecosystem.
A Duopoly in the Making?
Together, PhonePe and Google Pay accounted for over 83% of the UPI transaction volume and around 86% of the transaction value, highlighting a clear duopoly in the Indian digital payments market. Other UPI apps, including Paytm and various bank-led platforms, trail significantly in both categories.
This dominance raises important questions about market competition, innovation, and regulatory oversight, especially as UPI becomes the backbone of India’s digital payment infrastructure.
UPI Continues to Expand Rapidly
The UPI ecosystem itself has been witnessing exponential growth. The National Payments Corporation of India (NPCI), which operates UPI, has been working to expand its reach domestically and internationally. With increased adoption across retail, small businesses, and even Tier-2 and Tier-3 cities, UPI has become a critical part of India’s financial ecosystem.
Conclusion
PhonePe’s continued dominance in the UPI market as of March 2025 showcases its strong positioning and deep consumer trust. As it heads towards its IPO, these numbers reinforce its status as the market leader in India’s digital payments revolution. With Google Pay not far behind, the Indian UPI ecosystem is increasingly looking like a two-horse race, one that will shape the future of fintech in the country.
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