Roadmap for Bank-based Apps to Gain UPI Market Share A missed opportunity!
DataQuest|November 2024
As UPI dominates, will banks step up to reclaim their market? UPI continues its meteoric rise, handling 69.6% of India's digital transactions and reaching ₹20.6 lakh crore across 14.8 billion transactions in August 2024 alone.
Dharmender Jhamb Pragya Madan
Roadmap for Bank-based Apps to Gain UPI Market Share A missed opportunity!

Yet, banks contribute a mere 2.1% to this ecosystem, largely dominated by third-party apps. With upcoming caps on these apps' market share, banks have a key opening to leverage their infrastructure, trust, and customer relationships to capture a bigger slice of India's digital payments market.

The Unified Payments Interface (UPI) has significantly transformed how Indians transact, paving the way for a cashless economy. According to the DigiDhan Dashboard, UPI accounted for 69.6% of all digital payment transactions by volume in India during FY 2023-24. It has become the most preferred mode of payments, processing 20.6 lakh crore across 14,863 crore transactions in August 2024 alone. This marks a nearly 31% increase in the value of transactions and a 40% increase in transaction volume compared to the previous year. UPI continues to make digital payments faster and more accessible, driving financial inclusion across both urban and rural regions.

In August 2024, this growth is driven by a leading few players contributing to more than 90% in terms of volume of transactions has raised concerns regarding market and Technology concentration. It is because UPI enables free instant payments, discouraging other players from promoting it aggressively due to a lack of revenue generation.

To address this issue, the National Payments Corporation of India (NPCI) proposed a 30% volume cap on Third-Party App Providers (TPAPs) in November 2020. UPI players were initially given two years to limit their market share to 30%. Although the original deadline was set for December 2022, it has since been extended for another two years to the end of 2024. Despite this extension, there has been limited progress toward implementing the cap so far.

Esta historia es de la edición November 2024 de DataQuest.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición November 2024 de DataQuest.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE DATAQUESTVer todo
How big is India's Computer Accessories Market? Innovations expected by FY25
DataQuest

How big is India's Computer Accessories Market? Innovations expected by FY25

India’s computer accessories sector grows with Make in India, Digital India, and rising demand for high-tech accessories like AIl-powered devices, boosting exports globally.

time-read
3 minutos  |
November 2024
When Network Threats Are Not Allowed to Check-in
DataQuest

When Network Threats Are Not Allowed to Check-in

Like elevators, networks in this hotel are segregated for guests, for service, and locked for outsiders unless they prove bona fide. Does this approach work?

time-read
4 minutos  |
November 2024
Robotic Surgeries can turn into double-edged Swords
DataQuest

Robotic Surgeries can turn into double-edged Swords

Technology should never come at the cost of affordability, privacy, training ease, the ability to practice anywhere, CRM’s real use and sensitivity to patient experience. Surjeet Thakur, CIO Rajagiri Hospital, Kochi gives us an X-ray from different angles.

time-read
5 minutos  |
November 2024
Does Santa Claus watch when you pay rent on time?
DataQuest

Does Santa Claus watch when you pay rent on time?

If yes, what kind of diary does he use to distinguish good kids from delinquent ones? And what stockings can you hang to translate this good behaviour into rewards home loan discounts, prop-tech speed, landlord KYC or more?

time-read
6 minutos  |
November 2024
Roadmap for Bank-based Apps to Gain UPI Market Share A missed opportunity!
DataQuest

Roadmap for Bank-based Apps to Gain UPI Market Share A missed opportunity!

As UPI dominates, will banks step up to reclaim their market? UPI continues its meteoric rise, handling 69.6% of India's digital transactions and reaching ₹20.6 lakh crore across 14.8 billion transactions in August 2024 alone.

time-read
3 minutos  |
November 2024
The Future of Machine Identity
DataQuest

The Future of Machine Identity

The biggest challenge today in the digital security sphere is securing machine identities -the digital entities such as APIs, software applications, and IoT devicesthat are constantly being targeted due to the changing nature of cyber threats.

time-read
3 minutos  |
November 2024
Redefining AI Application Delivery
DataQuest

Redefining AI Application Delivery

In this discussion with F5’s Ahmed Guetari and Adam Judd, we explore the collaboration between F5 and NVIDIA, which leverages the innovative capabilities of NVIDIA's BlueField-3 DPUs and F5’s BIG-IP Next platform. This partnership is set to redefine AI application delivery and security, particularly in the high-growth Indian market, by enabling better resource allocation, faster data processing, and robust security enhancements. With AI adoption surging across industries, F5 and NVIDIA's synergy brings transformative solutions for service providers and enterprises, poised to drive India’s AI-led innovation.

time-read
3 minutos  |
November 2024
EPAM's Bold Leap: Transforming Business with Al-Driven Salesforce Solutions.
DataQuest

EPAM's Bold Leap: Transforming Business with Al-Driven Salesforce Solutions.

Siba Padhy, Head of Salesforce Business, EPAM Systems highlights how Salesforce has evolved from a core sales solution to a comprehensive platform that encompasses service, marketing, and commerce, with a significant emphasis on leveraging AI technologies, particularly the newly launched Agentforce and Einstein GPT. Padhy discusses the burgeoning agent tech economy in India and EPAM's strategic focus on delivering tailored solutions that address specific market needs. With ambitious growth targets, EPAM aims to double its Salesforce expertise in the coming years, positioning itself as a key player in driving digital transformation across various industries.

time-read
3 minutos  |
November 2024
The Smart Manufacturing Revolution in India
DataQuest

The Smart Manufacturing Revolution in India

Explore how cutting-edge technologies are redefining manufacturing in India, shaping a future where efficiency and sustainability go hand in hand.

time-read
5 minutos  |
November 2024
Digital Governance: Changing that Red Carpet into a Green One
DataQuest

Digital Governance: Changing that Red Carpet into a Green One

India's approach and success stories in digital governance show how technology should be used to cover the entire carpet area - From expanding inclusion to the digitally not-so-savvy folks to strengthening interoperability - we have made sure the grass is green, every side

time-read
10+ minutos  |
November 2024