Google Pay corners highest share of UPI transactions on Razorpay gateway

While the preferred mode of digital transaction for Indian consumers remained cards, Unified Payments Interface (UPI) has emerged as the second most used mode of digital payments on Razorpay’s payment gateway, said the Bengaluru-based startup in a report on fintech trends, The Era of Rising Fintech.

Cards accounted for about 57% of digital transactions, UPI for 17% while mobile wallets were at less than 2% from being 6% last financial year.

Among the multiple modes of UPI payments, Google Pay accounts for 54% of the merchant transactions on the platform followed by PhonePe at 11.9% and Paytm at 9.7%. BHIM or Bharat Interface for Money has a share of 4% of the transactions.

Further, the report highlighted that among the multiple sectors where Razorpay is used, as much as 42% is accounted for by travel, 17% on utilities and 16% on e-commerce.

The report said that digital payments are expected to grow at a CAGR of 70% up to 2020 and mobile payments in terms of volume will grow 10 times to 2020.

There is a need for more clarity on regulations to help fintech companies evolve faster, the report said. Razorpay claims to have hit a run rate of $1 billion worth of transactions within three years of operations.