Results · Financial Services

PhonePe UPI transactions dip 6% in February

By Startup Enthusiast · 14 March 2026

What they do

PhonePe's February UPI volume fell to 928.3 crore transactions, down from 991.3 crore in January

The decline mirrors a broader UPI slowdown, with market share nearly steady at 46.5%

A parliamentary panel has revived talks on merchant fees, which could affect future volumes

PhonePe processed 928.3 crore UPI transactions in February, down from 991.3 crore in January.
This marks a 6% month-on-month decline in transaction volume for PhonePe.
Google Pay's UPI transaction value stood at ₹9.03 lakh crore in February.
Paytm's market share was 8% in February, with a transaction value of ₹1.74 lakh crore.
The overall UPI ecosystem saw 20.39 billion transactions in February, down 6% from January.
Total UPI transaction value fell 5% to ₹26.84 lakh crore in February.
All major UPI players, including Google Pay and Paytm, saw volume declines in February.

MDR is a fee merchants pay to banks and payment providers for processing digital transactions.
The government removed MDR on UPI in 2020, but the Payments Council of India is pushing to restore it.
The government currently subsidises UPI ecosystem players, with ₹2,000 crore earmarked for incentives in FY27.
The FY27 budget allocation for UPI incentives is nearly five times the ₹437 crore budgeted for FY26.

PhonePe is a digital payments platform that enables UPI-based money transfers and payments.
It processes billions of transactions monthly, holding the largest share of India's UPI market.
PhonePe earns through transaction fees on certain services and by offering financial products.
The company operates primarily in India, competing with Google Pay, Paytm, and others.
PhonePe's UPI market share was 46.5% in February, down slightly from January.
Its transaction value in February was ₹13.1 lakh crore.