PhonePe has unveiled an AI-driven system, powered by AI coding assistants and its “Integration Intelligence,” aimed at speeding up merchant payment gateway integrations. The company says the process that typically takes weeks can now be completed in minutes, enabling faster onboarding and earlier payment acceptance—especially benefiting small and medium businesses.
Smaller third-party UPI players plan to lobby NPCI for new limits on market leaders like PhonePe, Google Pay and Paytm. Their proposals include curbing aggressive user acquisition, tightening monetization and opening merchant services, arguing the long-delayed 30% market share cap hasn’t been implemented. The push could reshape how apps compete for UPI users and merchants.
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Ujjwal Jain, CEO of PhonePe’s stock trading platform Share.Market, has stepped down after four years. Jain launched Share.Market in August 2023 and previously built WealthDesk and OpenQ before PhonePe acquired them. The departure comes as PhonePe has reportedly postponed its IPO plans, raising questions about the platform’s next phase.
UPI transactions dipped 1.3% month-on-month to 22.35 billion in April, down from 22.64 billion in March, according to NPCI data. The transaction value also eased to ₹29.03 lakh crore from ₹29.53 lakh crore. Yet on a year-on-year basis, transactions climbed 25% and value rose 21%. Average daily count and value both increased MoM as NPCI held talks with smaller ecosystem players.
Amazon and Meta are joining rivals in a regulatory push to curb the dominance of Google Pay and PhonePe in India’s UPI instant payments market. Together they account for about 80% of transaction volume, and competing players are planning meetings with regulators to lobby for restrictions that could reshape how the payment system operates.
PhonePe says it has reached 50 million registered merchants, marking a major push to bring more Indians into digital finance. The app is expanding beyond payments with services like loans and tools for small businesses, aiming to boost accessibility in smaller towns. The scale-up highlights how merchant growth is becoming the base for broader financial offerings.
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PhonePe strengthened its lead in India’s UPI ecosystem in March, with transactions up 88% to 1,050 crore and overall UPI volume hitting record highs. NPCI data shows the month’s transaction value climbed to 29.53 lakh crore. Google Pay and Paytm saw slight market-share declines, while smaller players like Navi and super.money gained modest ground. Regulatory moves on PPIs and new UPI use cases also loom.
PhonePe has raised $350 million (about Rs 3000 crore) led by General Atlantic, valuing the startup at $12 billion (around Rs 98,000 crore). The company says it will invest in infrastructure such as data centers and expand into financial services including insurance, wealth management, and lending. The move follows recent Flipkart-PhonePe ownership separation.
Razorpay is reportedly preparing a confidential IPO filing, but investors may scrutinize whether its growth is sustainable and how quickly it can reach profitability. The startup, previously valued at $7.5 billion, could face valuation pressure, with estimates pointing to roughly $5 billion. The move also comes after Walmart-backed PhonePe paused its $1.3 billion IPO due to geopolitical concerns.
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