This Is How The New UPI Feature Is Giving a Headache To Google Pay And PhonePe’s Duopoly

The introduction of the UPI Plugin could potentially disrupt the dominance of leading UPI payment platforms like PhonePe and Google Pay. These platforms currently facilitate the majority of merchant UPI transactions, commanding 47% and 33% market share respectively. However, the shift of major merchants like Swiggy, Zomato, Flipkart, Myntra, and Dream 11 towards in-line or in-app payments could significantly impact these giants, potentially leading to a substantial decline in their market share. Ecosystem players, including merchants, payment processors, and banks, have long advocated for such a product. Currently, merchant transactions account for about 57% of all UPI payments, with half of them occurring online. If a significant number of merchants adopt the UPI Plugin, PhonePe and Google Pay stand to lose a significant portion of their transaction volume. Given that nearly 60% of all online transactions utilize UPI, and this figure is projected to rise to 75% in the coming years, the success of the UPI Plugin becomes pivotal in ensuring the continued growth and success of online payments.