{"id":1847,"date":"2019-08-07T14:05:57","date_gmt":"2019-08-07T08:35:57","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=1847"},"modified":"2025-02-12T17:51:30","modified_gmt":"2025-02-12T12:21:30","slug":"upi-digital-payments-transactions-july-2019","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/upi-digital-payments-transactions-july-2019\/","title":{"rendered":"Google Pay Continues Going Tez as the Preferred UPI App"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">UPI has seen a fast ascension, particularly over the last year. There are streams of banks, wallets and digital payment companies like Google Pay, PhonePe, Paytm, etc, that are pushing UPI as one of the preferred <a href=\"https:\/\/razorpay.com\/docs\/payments\/dashboard\/settings\/payment-methods\/\">payment options<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As of today, we use UPI for mostly everything. From purchasing staple goods to paying rent, taxi rides to booking flight tickets, UPI has become a way of life. Read more on this in our <a href=\"https:\/\/razorpay.com\/blog\/digital-payments-era-of-rising-fintech-report\" target=\"_blank\" rel=\"noopener noreferrer\">The Era of Rising Fintech<\/a> report.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to NPCI, UPI based digital payments for July touched 822.2 million, which is enough to make UPI as the reigning champion of the payments throne.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">UPI is generally used for two kinds of transactions:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Person to Person (P2P)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Person to Merchant (P2M)\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once hailed as a P2P payment mode in 2017, UPI, in two years, has matured as a preferred P2M payment platform.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At Razorpay, we observe UPI based P2M transactions from over 350,000+ businesses, which includes IRCTC, BookMyShow, Zomato, Airtel and many more.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, we have analysed the transactions that took place on Razorpay to see who wears the hat among the apps.<\/span><\/p>\n<h2>Google Pay continues going strong<\/h2>\n<p><a href=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-wise-contribution.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1850 size-large\" src=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-wise-contribution-1024x574.png\" alt=\"upi app usage in india\" width=\"1024\" height=\"574\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-wise-contribution-1024x574.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-wise-contribution-300x168.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-wise-contribution-768x431.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-wise-contribution.png 1537w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Guessing is too mainstream because consistency has a new name.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cutting through the noise to the top is Google Pay&#8211;the choice of customers over any other app in the payment landscape. 59.23% is a humongous chunk of total UPI transactions! Well, it seems like changing the name from Tez came to fruition.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keeping the second spot tight and bright is PhonePe with 24.70% of <a href=\"https:\/\/razorpay.com\/upi\/\">UPI transactions<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whereas, the third spot is owned by Paytm with 6.35% UPI transactions made via the app and finally, BHIM takes the fourth place with 5.37% transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Banking UPI apps that didn\u2019t make it to the list are ICICI, SBI, Axis and HDFC with 1.42%, 0.34%, 0.18% and 0.08%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s turn the page and inquire about the growth of popular UPI apps.\u00a0<\/span><\/p>\n<p><a href=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-growth.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1852 size-large\" src=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-growth-1024x574.png\" alt=\"upi app growth\" width=\"1024\" height=\"574\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-growth-1024x574.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-growth-300x168.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-growth-768x431.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/app-growth.png 1537w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Surprisingly, the popular UPI apps are painted red, whereas, UPI apps of the banks have seen moderate growth. Still unbelievable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Being used by many, <a href=\"https:\/\/razorpay.com\/blog\/upi-transactions-trends-june\" target=\"_blank\" rel=\"noopener noreferrer\">Google Pay saw a staggering 10.5% growth in June<\/a>. Basking in old glory was short-lived, while July has a 0.9% decline in growth for the app.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PhonePe suffered the same fate with a negative 3.9% growth, but the worst happened to Paytm and BHIM with a negative 26.9% and 17.9%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And who said banks were old-school? UPI apps by banks are back for their bucks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ICICI and SBI lock horns with close combat&#8211;a 13% growth, and HDFC dethrones Axis with 8 points, which seems fair.\u00a0<\/span><\/p>\n<h2><b>UPI contributions across regions &#8211; A tale of many cities<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The future of digital payments in India demands innovation and UPI has filled the void quite effectively. The mobile-only payment system is emerging as a primary payment option for Indian users, but do you know about the regions that contribute to a digital economy?\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Karnataka leads the hub, which contributed 26.92% UPI contribution throughout the country, and Bengaluru left its mark with a stunning 37.1%\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maharashtra proved its mettle by contributing 15.29%, while Pune raked in 9.4% growth\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Finally, Andhra Pradesh and Telangana have seen 11.63% transactions rate, to which Hyderabad responded with a 13 pointer in comparison to others\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Here\u2019s a Tier wise split infographic.\u00a0<\/span><\/p>\n<p><a href=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/tier-wise-contribution.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1854 size-large\" src=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/tier-wise-contribution-1024x574.png\" alt=\"upi usage in indian cities\" width=\"1024\" height=\"574\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/tier-wise-contribution-1024x574.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/tier-wise-contribution-300x168.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/tier-wise-contribution-768x431.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/tier-wise-contribution.png 1537w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Of course, the Tier 1 cities remain undisputed with 64.30% contribution towards the digital economy, but the Tier 2 and 3 cities have caught the wind and have managed to draw 29.91% and 5.78% respectively.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bengaluru tops the Tier 1 cities list, only to be followed by Hyderabad. Whereas, Pune holds the secondary base uptight.\u00a0<\/span><\/p>\n<h2><b>Contribution across payment modes In July &#8211; Preferred and favourite\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">UPI isn\u2019t the sole player in the payment landscape. There are other modes like credit and debit cards, netbanking, bank transfers, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s scrutinise their share.\u00a0<\/span><\/p>\n<p><a href=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/method-wise-contribution.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1856 size-large\" src=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/method-wise-contribution-1024x574.png\" alt=\"digital payment modes india data\" width=\"1024\" height=\"574\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/method-wise-contribution-1024x574.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/method-wise-contribution-300x168.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/method-wise-contribution-768x431.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/08\/method-wise-contribution.png 1537w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If UPI is the most preferred payment mode, then plastic money is the favourite. Indian customers love to swipe, which gives us a number&#8211;47.01% transactions are from credit and debit cards\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Still the second favourite, UPI retained its position with 37.06%, which is a slight increase from June<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Netbanking saw a nominal dip and remained in the third spot with a 12.66%.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bank transfer, wallets, e-mandate, and EMI saw similar figures like 1.05%, 1.51%, 0.65% and 0.06 compared to June\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Average ticket value &#8211; Reality blues<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The ultimate de-facto for making large value transactions isn\u2019t UPI. According to our insights, customers are still hesitant from making large value UPI transactions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s dig deeper.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key takeaways<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Indian customers have shown their trust to EMI in terms of large value transactions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/blog\/cardless-emi-payment-method\/\">Cardless EMI<\/a>, although new to the game has its heart wrapped around customers as the second favoured<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Although old-school, <a href=\"https:\/\/razorpay.com\/docs\/payments\/payment-methods\/bank-transfer\/\">bank transfer<\/a>, netbanking, e-mandate and card follow the trail as the gatekeepers of their fort\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It seems like UPI and wallets need to up their game to lure customers in favour of large transactions<\/span><\/li>\n<\/ul>\n<h2><b>The show must go on<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Cards remain the king of the ring in digital transactions with an overwhelming share of 47.01%, but the UPI share in digital transactions has increased by 1.3% in July as compared to June.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, as far as convenience is concerned, a consumer is the sole proprietor of his\/her payment choices. Nobody can dictate their preference; somewhat simplify the process of payment because, in the end, ease of usage wins.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Google Pay is the preferred choice of customers to make UPI payments, followed by PhonePe and Paytm. <\/p>\n","protected":false},"author":7,"featured_media":1857,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[51],"class_list":{"0":"post-1847","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-payments"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/1847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=1847"}],"version-history":[{"count":2,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/1847\/revisions"}],"predecessor-version":[{"id":20437,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/1847\/revisions\/20437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/1857"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=1847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=1847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=1847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}