The report emphasized that the country’s UPI ecosystem is currently being dominated by a handful of third-party app providers (TPPs), with Phone, Google Pay and Paytm that lead in both transaction volume and value.
India needs its own dominant UPI app to really use data instead of staying dependent on foreign payment platforms, according to a report from the State Bank of India (SBI).
The report emphasized that the country’s UPI ecosystem is currently being dominated by a handful of third-party app providers (TPPs), with Phone, Google Pay and Paytm that lead in both transaction volume and value.
It stated: “The need for a Desi opposite -inuity app cannot be emphasized too much if we are on our way to the use of data”.
According to the data for July 2025, Phonepe has emerged as the clear leader in the UPI room. The app registered a massive 8,931 million transactions in volume and transactions worth £ 12.20.141 crore in value.
Google Pay was the second largest player, with 6,923 million transactions in volume and a total transaction value of £ 8.91.297 Crore. Paytm was in third place and registered 1,366 million transactions in volume and a value of £ 1,43,651 crore.
Other players such as Navi and Super.Money reported much smaller numbers. Navi processed 444 million transactions worth £ 23,563 crore, while Super.Money 253 million transactions handled with a value of £ 9,019 crore.
The report noted that this higher concentration of transactions between a few apps in the India-Central Fintech innovation could limit in the future.
Although the UPI ecosystem has grown quickly and digital payments has been transformed, the lack of a strong, fully indigenous app could result in long-term challenges in terms of data control and innovation.
The report emphasized the importance of creating an “Desi Counter Intuitive App” that focuses on the unique requirements of India instead of just following worldwide models.
The report said that the necessity of such an app does not emphasize too much, because India switches to the use of data in its digital and financial systems.
UPI data is currently concentrated with a few major players and most of these platforms have a strong foreign property or influence.
This, the report warned, may not be ideal for India in the long term, especially when data on financial transactions emerges as a critical engine for innovation in digital lending, insurance and other fintech services.
The report concluded that a fully native UPI app would not only help to protect transaction data, but also ensure that fintech innovation in the country grows in a way that is tailored to India’s needs and priorities.
Published on August 18, 2025
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