India’s digital payment landscape has undergone a remarkable transformation, propelled by the country’s technological advancements, a supportive regulatory environment, and the launch of the Unified Payments Interface (UPI) in 2016. Initially introduced by Raghuram G. Rajan, then Governor of the Reserve Bank of India, UPI was piloted in Mumbai with just 21 participating banks. The goal was clear: to simplify the cumbersome banking process and offer a seamless, mobile-friendly platform for transferring funds.
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Fast forward to today, and UPI has fundamentally changed how people handle payments, making digital transactions not only easier but more inclusive. Unlike traditional banking systems that require account numbers and IFSC codes, UPI allows for quick, direct transfers using just mobile numbers. This simplicity has paved the way for UPI to reach millions, particularly in rural areas, and has given rise to a new era of digital payments.
In 2024, UPI transactions saw an explosive surge of nearly 46%, reaching a staggering 17,220 crore transactions, up from 11,768 crore in 2023. The total transaction value also saw a remarkable rise of 35%, reaching INR 246.82 lakh crore, compared to INR 182.84 lakh crore the previous year.
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The growth of UPI adoption can be credited to the explosion of fintech apps like PhonePe, Google Pay, Paytm, and CRED, all of which have successfully integrated UPI into their offerings. However, the market is still largely dominated by just a handful of players. PhonePe, for example, accounted for over 48% of the UPI market share in 2024, while Google Pay followed with 37%. Paytm, on the other hand, saw its market share drop significantly to 7.03%.
Amid this intense competition, a new player has entered the scene. POP, a fintech startup founded in 2023 by former Flipkart employee Bhargav Errangi, is making waves with a unique proposition. With just six months in the market, POP has already captured 0.2% of the UPI market share and aims to expand that to 10% by offering a combination of UPI payments, a marketplace, and a credit card that rewards users with POPcoins. The startup’s bold ambition is to disrupt the status quo, taking aim at the third spot in the UPI market and challenging established giants like Paytm.
This innovative approach is certainly one to watch, as POP seeks to carve out its place in an increasingly crowded and competitive market.