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Ambarish Kenghe, vice president of fintech giant Google Pay , said that the Unified Payments Interface (UPI) market is huge and several players are operating within it. “I don't see a challenge with this issue of market share cap because I think there is a large number of players who are operating with a large number of apps and there is scope for everyone,” Kenghe said at the ET World Leaders Forum held in New Delhi on Saturday. The central government and the National Payments Corporation of India ( NPCI ) had earlier proposed a 30% market share cap in the UPI segment to avoid market dominance and duopoly.
However, earlier this month, ET reported that enforcing this directive seems unlikely, with just over four months remaining for the deadline. On August 28, Sameer Nigam, chief executive of PhonePe , said that the market share cap directive is hindering the company’s initial public offering (IPO) plans. ETtech Walmart-backed PhonePe is currently the largest UPI payment app in India, holding around 48% of the market share in terms of transaction volume, followed by Google Pay with 37% market share.
The ET World Leaders Forum Live Updates Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories According to Kenghe, when lot of players running after the same thing, it gets harder because it becomes crowded, but there are enough players in the market to keep it safe and secure. In July, PhonePe and Google Pay dominated the UPI market, accounting for more than 85% of the 14.4 billion UPI transactions.
PhonePe clocked 6.9 billion transactions, while Google Pay recorded 5.3 billion in the month.
Paytm (One 97 Communications) ranked third with 1.1 billion transactions, and Cred followed in fourth place with 142 million payments. On the use of AI in fraud detection, Kenghe said that Google Pay saved around Rs 12,000 crore last year on financial frauds using AI.
Kenghe pointed out that artificial intelligence is not a new concept; it's been around for a long time, with generative AI already being nearly a decade old. He emphasized that various use cases of AI have existed for many years..
