While addressing the Global Fintech Fest in Mumbai on Tuesday (September 5), finance minister Nirmala Sitharaman appreciated the Indian fintech startups for taking the lead in tapping new to credit customers and UPI-led QR code payments. She said that fintech startups have gained significance and become more dynamic financial inclusion tools with time.
Sitharaman said that the startups operating in the fintech space have taken up 36% of the market share of the lending business, which is the primary business for the traditional banks.
“Fintechs are reaching out to far more customers, an area that is very conventional and the domain of the banks,” the finance minister added.
Talking about the payments sector, Sitharaman said that the fintech startups have taken up 93% of the UPI transactions share against only 7% market share left with the banks.
The FM’s comments have come at a time when the UPI crossed the 1,000 Cr monthly transaction mark in August 2023, recording transactions to the tune of INR 15.18 Lakh Cr.
Following the release of August data, the National Payments Corporation of India (NPCI) took to Twitter (now called X) and said, “Drumroll please! UPI has just shattered records with an astonishing 10 Bn plus transactions. Join us in celebrating this incredible milestone and the power of digital payments. Let’s keep the momentum going and continue to revolutionise the way we make transactions with UPI!”
It is pertinent to note that PhonePe, Google Pay and Paytm continue to dominate the UPI arena.
While PhonePe processed 446.14 Cr UPI transactions worth INR 7.46 Lakh Cr as of June 2023, Google Pay secured the second spot with 35% of the total number of UPI transactions worth INR 4.94 Lakh Cr. Meanwhile, Paytm accounted for 14.01% of the transactions worth INR 1.62 Lakh Cr as of June 2023.
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