PhonePe Beats Paytm


Phonepe, payments platform of flipkart lashed out at rival Paytm alleging that the latter’s claims about the leadership in the Unified Payments Interface (UPI) trasactions were “unidimensional and misleading”.

PhonePe said, Paytm “seems to be leading the market in terms of number of transactions, the average value of such transactions is much lower at Rs 40 compared to its own ATV (average transaction value) of Rs 1,800”. PhonePe also clarified that the data around Average Transactions per Customer (ATPC) and the Paytm’s ATV wasn’t  available.

Based on the 21 million money transfer transactions which are made by the Paytm customers to the PhonePe users, the company based out in Bangalore found that the 40,000 unique consumers have done more than 500 transactions each in the month of February thereby bringing the average transaction for the Paytm to less than Rs. 40.

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Interestingly, Paytm had earlier this week issued a statement claiming leadership position on the UPI platform.  PhonePe alleged that Paytm’s transaction volumes are “clearly influenced by significant per-transaction cashback incentives that appeal to a very small population”. It further said that its calculations reflect that broad-based adoption of UPI has not happened on Paytm and that transaction numbers for customers do not reflect typical UPI use cases.


For these combination of reasons, we believe that Paytm’s claim that they are the largest on UPI is both uni-dimensional and misleading,” The founder of Paytm Mr. Vijay Shekhar Sharma recently alleged that the payments body NPCI has been arm twisted by the social media giant.  Facebook to give preferential treatment to messaging app WhatsApp for the launch of peer-to-peer payments based on UPI on the platform.

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