PhonePe vs Google Pay - A statistical analysis [Spoiler alert: PhonePe wins]

In the recent data released by NCPI, in March, PhonePe was the most used UPI app in the country. Google Pay was a really distant second, which Paytm making up the podium. PhonePe’s meteoric rise has begged the question, is it really bigger than Google Pay?

UPI in India – A Love Story

In the data presented by NPCI, the National Payment Corporation of India, in the FY 2020-21, there were a total of 22,330.65 Million UPI transactions in the country. These amounted to a total of Rs. 41,036.54 Billion, which is double the previous FY.

This clearly represents how much India has progressed in terms of cashless and digital payments, which was still a novel idea only about 5 years ago. For a quick comparison, or throwback, in the FY 2016-17, there were only 17 million UPI transactions – there is a 1250 times increase over the past 5 years. 2020-21 saw 22,330 million transactions. India has rapidly adapted to UPI transactions due to its simplicity and one-click ease.

The UPI apps in question today, Google Pay and PhonePe, were both founded in 2015, just 3 months apart. Originally known as Tez in India, that app was folded into Google Pay on August 28, 2018. Along with Paytm, these three apps are the “Big Three” of India’s UPI Ecosystem.

However, PhonePe is rapidly leaving its competitors in the dirt, as the stats show. PhonePe is by far the most popular UPI app in the country, in terms of volume of transactions.

Statistics Don’t Lie

According to NCPI statistics, PhonePe handled almost 2 billion transactions in March 2021, that valued at Rs. 2,31,412.33 Crores. For perspective, that is 261.55 million more transactions than all the other apps combined. Yes, that is correct.

Comparatively, Google Pay finished with just under a billion transactions in the month, valued at around Rs. 2,01,185.14 Crores. Interestingly, Paytm was the only other app with more than 100 million transactions, finishing with 401 million. Its transactions were valued at Rs. 43,221.25 Crores.

This is where things get really interesting. While it is obvious who is leading here, there is more to the numbers than meets the eye. In terms of Average Value Per Transaction, Google Pay edges out PhonePe quite significantly. The former has an AVPT of Rs. 210.22, while the latter has the same figure at Rs. 192.92.

Naturally, this reflects on the trust people put in the app. PhonePe might have more volume and value in transactions, but it still is outclassed by Google Pay. However, given the volume of transactions PhonePe handled, there is no debate on the quality of the app. Stats can be moulded to one’s agenda, it seems. Look at it whichever way, there is a clear winner, that stands head and shoulders above all the other apps.

The Verdict

There is no doubt that Google Pay and PhonePe are two of the most popular UPI apps in India. The general public associated all Google advertising with all its products, hence there is a perception that each of its products is best in class.

India’s UPI ecosystem is vast and handles millions of transactions each day. There are a total of 54 apps, so it is highly competitive too. However, PhonePe is, by far, the biggest UPI app in the country. Google Pay might look to usurp its throne, but it has a long way to go.