Sachin Bansal‘s Navi has achieved a remarkable milestone, overtaking Cred to become India’s fourth-largest UPI app in October. Data from the National Payments Corporation of India (NPCI) reveals Navi’s 158 million transactions last month, marking a 31% increase from 120 million in September. Despite reducing incentives and cashbacks, Navi maintained robust growth.
Meanwhile, Cred, led by Kunal Shah, saw transactions grow from 140 million to 152 million in the same period. Both Navi and Cred now hold approximately 1% of the UPI market. PhonePe continues as the market leader with a 48% share, followed by Google Pay at 37% and Paytm at 7%.
New Players Gain Ground as Festive Sales Drive UPI Usage
The festival season bolstered UPI’s overall transaction volume by 11% and value by 14% month-over-month. Flipkart Group’s app, super.money, also saw a remarkable increase, doubling its transactions to reach 50 million in October. super.money now holds around 0.3% of the UPI market, reflecting a threefold increase.
Challenges in UPI Market Share Cap Implementation
As NPCI aims to curb the dominance of major players through a market cap policy, challenges remain. The initial plan to limit individual apps to a maximum 30% market share by year-end may be delayed. Presently, the top two players, PhonePe and Google Pay, command a combined 85% of transactions.
RBI Directives and Navi’s Focus on In-House Products
In October, the Reserve Bank of India (RBI) directed Navi Finserv and three other non-bank finance companies (NBFCs) to halt lending practices, citing high interest rates and unfair charges. However, UPI transactions on Navi remained unaffected. Navi distinguishes itself by manufacturing financial products, such as personal loans, home loans, insurance, and digital gold, rather than distributing third-party offerings.
Super. Money’s Strategy for Growth
New UPI entrants, such as super. Money, are targeting credit products, including a RuPay credit card offering. According to founder and CEO Prakash Sikaria, the company has already surpassed a million waitlist registrations. Super. Money’s phased launch, beginning in June, culminated in an official launch in August.
Future and Prospects: BHIM and Tier-Two UPI Apps
To foster competition in the UPI ecosystem, NPCI has also spun off its BHIM app into a separate entity, appointing veteran banker Lalitha Nataraj as CEO. Despite efforts to promote tier-two UPI apps, their impact remains limited in the larger UPI landscape
Why has Navi grown so fast?
Navi’s Rapid Growth: Fintech app Navi, co-founded by Sachin Bansal, saw a significant 31% growth in October, overtaking Cred to become the fourth-largest UPI app in India.
UPI Market Snapshot: With PhonePe, Google Pay, and Paytm leading, Navi recorded 158 million transactions in October, up from 120 million in September. Meanwhile, Cred saw growth to 152 million transactions from 140 million.
Festive Boost and Market Share: October’s festive sales contributed to an overall 11% increase in UPI transaction volumes and a 14% rise in transaction value.
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