In September 2026, PhonePe and Google Pay together accounted for 77.8% of UPI transactions in India, marking a decline from 81.9% a year earlier, amidst rising competition from other apps.
- PhonePe and Google Pay’s combined UPI share fell to 77.8% in September 2026.
- PhonePe held 45.57% and Google Pay 32.23% individually, both above NPCI’s 30% volume cap.
- Smaller UPI apps like Paytm and Navi continue to grow their transaction volumes.
What happened
In September 2026, PhonePe and Google Pay processed 10.91 billion and 7.71 billion UPI transactions respectively, combining for a 77.8% share of the UPI payments market. This marks a decline from 78.3% the previous month and a notable fall from 81.9% in September 2025. Over the past year, PhonePe’s market share decreased by 0.9 percentage points while Google Pay’s share slipped by 3.2 points.
The data is based on NPCI’s listed-app transactions tally of 23.93 billion, which excludes some apps with fewer than 20,000 monthly transactions categorized under “Other Apps.” Meanwhile, competing services like Paytm, Navi, and super.money have recorded gains, with Paytm holding 8.1% of the market and Navi increasing monthly transactions. Additionally, Kotak Mahindra Bank’s UPI apps have moved up in ranking, reflecting growing diversification within the ecosystem.
Why it matters
PhonePe and Google Pay have long been dominant players within India’s rapidly expanding UPI payments space. However, the gradual erosion of their combined market share signals rising competition and shifting user preferences. The increased activity by other apps could stimulate innovation and offer consumers more options for seamless digital payments.
Both PhonePe and Google Pay remain above the 30% UPI volume cap imposed by NPCI on third-party providers, a regulation designed to prevent monopolistic control and promote a balanced ecosystem. The compliance deadline for this volume cap extension is December 31, 2026, and the rolling three-month measurement period for enforcement means continued monitoring will be essential to ensure regulatory adherence.
What to watch next
Attention will focus on whether PhonePe and Google Pay can sustain their market share levels as competitors like Paytm and Navi continue to gain traction. The upcoming months will also be critical for their compliance with NPCI’s volume cap rule, which could affect market dynamics if either app exceeds regulatory thresholds over the rolling evaluation period.
Additionally, the growth trajectory of smaller UPI apps and niche players could reshape India’s payments landscape by driving further decentralization and fostering broader financial inclusion. Monitoring transaction volumes and user engagement across the ecosystem will provide key insights into how India’s UPI market evolves post-2026.