Transactions over the Unified Payments Interface (UPI) increased 5.8% to reach a new all-time high of 19.47 billion in July. Year-over-year (YoY), the number of transactions increased by 35%. The number of transactions decreased to 18.40 billion in June.
Transaction Value Rises to INR 25.08 Lakh Cr
UPI transactions in July were INR 25.08 Lakh Cr, up 4.3% from INR 24.04 Lakh Cr in the previous month, according to data from the National Payments Corporation of India. Prior to this, the amount of UPI transactions reached an all-time high of 18.68 billion transactions in May.
Compared to 613 million in June, the average daily transaction count increased to 682 million in the reviewed month. In addition, the average daily transaction value in July was INR 80,919 Cr.
PhonePe, Google Pay, and Paytm: Who Dominates UPI?
Nearly 50% of the overall transaction amount and 46.5% of all UPI transactions in June were made through PhonePe. Paytm maintained a 6.9% volume and 5.6% value share, while Google Pay held a 35.6% volume and 35% value share. The nation’s most popular digital payment system for merchant and peer-to-peer transactions is still UPI, which was created by NPCI.
UPI’s Global Expansion via PayPal, Venmo, Tenpay
The government is pursuing a number of steps to expand UPI’s reach globally, even as it continues to gain traction locally. The international division of the National Payment Corporation of India (NPCI) and the US-based online payment gateway PayPal collaborated last month to create PayPal World, a global digital payment platform.
Users will be able to utilise UPI and their other native payment systems, such as PayPal’s Venmo, China’s Tenpay Global, and Latin America’s Mercado Pago, to send money abroad or pay for foreign commerce.
UPI will record more transactions with new international users as a result of this improvement. RBI governor Sanjay Malhotra stated in March that the central bank intends to keep extending UPI’s reach “bilaterally” by connecting its payment infrastructure with other countries’ quick payment systems.
RBI Raises Concerns on UPI’s Sustainability
Although NPCI’s digital payment system keeps growing, the RBI is apprehensive about its long-term viability. The RBI governor stated last month that modifying the free digital transaction system to include minor fees is essential to UPI’s financial viability.
According to him, the government has been paying for the smooth, real-time payments infrastructure by subsidising banks and other stakeholders, as the UPI system is currently free for customers.
However, in order to provide consumers with digital payment choices through smart devices, including as wearables, linked cars, and smart applications, NPCI is developing an internet of things (IoT) version of the UPI.
According to directives issued by the National Payments Corporation of India (NPCI), a new set of UPI regulations went into effect today, August 1, 2025. The purpose of today’s UPI regulation amendments is to enhance the functionality of the online payment system.
If you use PhonePe, Google Pay, Paytm, or any other UPI app, the new UPI regulations that go into effect on August 1st will have an impact on your regular payment system. However, if you follow the NPCI guidelines, the UPI regulation changes won’t cause any problems, and payments might even go more smoothly.
Balance Check Limit Set to 50 Per Day
Numerous revisions to UPI rules have been adopted by the NPCI. You will no longer be able to check your bank balance on your PhonePe, Google Pay, and other apps indefinitely, as the restriction is set at 50. To make up for the inconvenience, a new UPI rule has been implemented that requires you to view your bank balance following every transaction.
Time Restrictions on Scheduled Bill Payments
According to the new UPI regulations, planned bill payments must be processed between 10 a.m. and 9:30 p.m. Furthermore, consumers will only have the option to check the status of a pending transaction three times, separated by ninety seconds.
GPay and Other UPI App Changes
GPay customers will have to follow the NPCI adjustments since the new UPI regulations will apply to Google Pay transactions. These include verifying the status of pending transactions, showing the bank balance, and calculating the bank balance cap.
The number of UPI transactions permitted daily has not been modified by the NPCI in its new UPI regulations, which went into effect on August 1. A user has a daily restriction of INR 1 lakh and is only permitted to perform a maximum of 20 UPI transactions.
New User Transfer Limits Explained
A transfer limit for UPI is frequently implemented for new users. For new users, banks typically permit a UPI transfer of INR 5,000 per transaction and a total of INR 5,000 for the first 24 hours.
The new UPI regulations also mandate that planned bill payments be processed during specific hours. The purpose of this step is to alleviate the strain on the everyday UPI transactions.
Why NPCI Enforced These UPI Rule Changes?
Now, during off-peak hours, auto payments to merchants or planned OTT platforms must be made by 10 am or after 9:30 pm. The circular also states that NPCI may take any required steps, such as restricting access to the UPI API, imposing fines, suspending new clients or onboarding, or taking other appropriate action, in the event that these instructions are not followed.
By implementing these regulations, NPCI hopes to improve online payment efficiency and lower the number of fraud incidents.
The globe is slowly paving its way towards a cashless society. From invoices to cards and now to mobile wallets, this significant transformation has reduced the weight of bulky wallets. We can pay for any product, transfer money, make bill payments, and almost everything to do with money from the comfort of our home. Payment wallets in India have made online transactions of money easy and fast, with their one-tap feature and quick processing, all at one go.
A mobile wallet is a digital wallet that uses a bank account or credit/debit card to make payments seamlessly while securing the data of the user. They are designed to enable secured transactions with a hassle-free process, with reduced fraud. This method of online payment has proved to be more economical as compared to other physical wallets. These wallets are easily accessible as well from the play-store or app store.
India ranks 2nd highest in the Asia Pacific for digital payment adoption.
Digital payments in India are set to account for 71.7% of the total payments volume by 2025, leaving cash and cheque transactions at 28.3%, according to a report by a US-based payment systems company.
Since Demonetization hit the Indian Economy harshly, the Government promoted the use of these wallets and since then the user base of these e-wallets has been increasing significantly. Many digital wallets by the Indian Government has been given to citizens like UPI, BHIM, Aadhaar Pay and Payment Banks.
How Does A Mobile Wallet Work?
Start by downloading the mobile app of your choice onto your smartphone. Then, load the card information you want to store, from debit, and credit cards to loyalty cards and even coupons.
When you want to make a purchase with your mobile wallet, you can either:
Choose your app and select a card at the checkout screen when you’re shopping online with your smartphone.
Tap your phone to a digital payment-enabled terminal at participating merchants when checking out. Mobile wallets use what is called a Near-Field Communication (NFC) chip that lets you use contactless payment with a physical card.
Types Of Mobile Wallets In India
Closed PPI
Semi-Closed PPI
Open PPI
Definition
Issued by a company to buy goods and services only from that company; it does not permit cash withdrawals or redemptions.
Can be used to buy goods and services from merchants that have a contract with the Issuer to accept the payment instrument; it does not permit cash withdrawals or redemptions.
Allows a user to buy goods and services, withdraw cash at ATMs or banks, and transfer funds.
KYC Requirement
No KYC required
No As Such compulsion for KYC
KYC is Required
Examples
Makemytrip Wallet
Mobikwik
PayTM Payment bank
Are Mobile Wallets Secure?
One security concern when using a mobile wallet is losing your phone or having it stolen. That’s why it’s smart to use something like two-factor authentication, which could include setting up a personal identification number or a fingerprint requirement to unlock your phone.
You can also protect your data by installing apps that will help you locate your phone if you lose it or remotely wipe the data so a thief can’t reach the sensitive information in your phone. If you see any suspicious or unauthorized charges on your account(s), it’s a good idea to immediately change your password and call your bank to let them know.
Paytm is one of the largest online commerce platforms in India offering its customers a mobile wallet to store money and make quick transactions. It is considered by many the best mobile app in India. Paytm was launched in 2010 and basically works on a semi-closed model. Users can load money and make payments to merchants. E-Commerce is an added benefit of it, but despite that, you can make bill payments, transfer money, and avail yourself of services of entertainment, travel, and cashback. Payments through Paytm are accepted almost everywhere.
Google Pay
Mobile Wallet
Google Pay
Founded
2017 (India launch)
Total Downloads
1B+ (on Google Play Store)
Google Pay – Best Wallet Apps in India
It was formerly known as Tez andfor obvious reasons, it gained its user base really quick, in spite of being a late entrant in the mobile wallet industry. It is the best online payment app or best money transfer app with cashback. Google Pay works with your existing bank account, which already means that your money is safe with the bank and no issues with recharging your wallet every month. Send or receive money from your friend directly to your bank account. There is also no such issue regarding KYC making it all the more popular.
BHIM (Bharat Interface for Money) is another best mobile wallet in India. It is a mobile wallet app developed by the National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). Launched in December 2016, it is intended to facilitate e-payments directly through banks. Users register their bank account with BHIM and set a UPI PIN for the bank account. It can be used by both Axis Bank users as well as other bank users. The Mobile Number is then the permanent address and they can start transacting. User can pay their friends, family and merchants with the tap of a button.
PhonePe
Mobile Wallet
PhonePe
Founded
2015
Total Downloads
500M+ (on Google Play Store)
PhonePe – Best Payment Wallet in India
PhonePe was launched in 2015 and is now a part of Flipkart. From UPI Payments to mobile recharges, and money transfers to online bill payments, this can be done easily on PhonePe. With a good user interface, PhonePe has offered the safest and fastest online transaction experience in India.
Mobikwik
Mobile Wallet
Mobikwik
Founded
2009
Total Downloads
50M+ (on Google Play Store)
MobiKwik – Mobile Wallet in India
Mobikwik was launched in 2009 with its key proposition in Recharge and Bill payments. Mobikwik is one of the independent mobile payment networks that has a user base of 32 million. This e-wallet lets its users add money using debit cards, credit cards, net banking, and even doorstep cash services. One of the unique features Mobikwik has offered its users is ‘expense tracker’, basically which allows users to set a budget for expenses via SMS data to analyze and control the expenditure.
This application was launched by the State Bank of India to let users transfer money to other users, pay bills, recharge, book tickets, shop, and travel. This is one of the top mobile wallets in India and has offered its mobile wallet services in 13 languages the best part is, that it is also available to non-SBI customers. It taps into the special feature where-in it allows its users to set reminders for dues, and money transfers, and view mini-statement for the transactions done already.
Citi MasterPass was launched recently by Citi Bank India and MasterCard. This is one of India’s first global outreach in terms of digital wallets for faster and more secure shopping. Citi Bank debit and Master card customers become the first in this country to shop at more than 250,000 e-commerce merchants. It has ensured fast checkout with a single tap and stores all credit, debit, prepaid, and shipping details.
ICICI Pockets
Mobile Wallet
ICICI Pockets (ICICI Bank)
Founded
2016
Total Downloads
5 M+ (on Google Play Store)
ICICI Pockets – Mobile Wallet in India
It’s one of the best mobile wallets in India. It has provided the convenience of using any bank account in India to fund your mobile wallet and pay for transactions. It basically uses a virtual VISA card that enables its users to transact on any website or mobile application in India and provides exclusive deals or packages from associated brands.
HDFC PayZapp
Mobile Wallet
HDFC PayZapp
Founded
June 2015
Total Downloads
10M+ (on Google Play Store)
HDFC PayZapp – Best Wallet in India
PayZapp is a complete payment solution by HDFC Bank which has a one-tap feature for easy payment. Not only does it let you recharge your phone or send money but also your DTH and data cards, pay utility bills, and compare and book flight tickets, trains, hotels and shops.
Amazon Pay
Mobile Wallet
Amazon Pay
Founded
2007 (Global), 2011 (India)
Total Downloads
500M+ (on Google Play Store)
Amazon Pay – Mobile Wallet in India
Owned by Amazon, this online payment processing service was launched in 2017 in India (globally- 2007). Amazon Pay has focused its customers more on Amazon and so it gives its users the option to pay with their Amazon accounts on external merchant websites, including apps like BigBazaar etc. With Amazon Pay, you get to shop on Amazon with a number of cashback and discounts with fast shipping services. Recently, Amazon Pay got tied up with fintech companies, such as Zest Money to enable no-cost EMI payment options. The application has also made it easier for buyers to buy products on Amazon and pay later via affordable monthly instalments.
Samsung Pay
Mobile Wallet
Samsung Pay
Founded
August 20, 2015
Total Downloads
100M+ (on Google Play Store)
Samsung Pay – Mobile Wallet in India
Samsung Pay is a digital wallet service owned by Samsung, it was launched on the year 2015. It is considered one of the best payment processing services for contactless payments. Samsung is accepted in almost every store, wherever credit and debit cards can be used it also offers Cashback. With the help of Samsung pay, the transaction between merchants and payers are possible without the exchange of bank and card information. Samsung Pay accepts all kinds of card readers like magnetic stripes, EMV and others,
Apple Pay
Mobile Wallet
Apple Pay
Founded
October 20, 2014
Total Downloads
Not publicly disclosed
Apple Pay – Mobile Wallet in India
Owned by Apple Inc., Apple Pay is a digital wallet service, which was launched in the year 2014. Major credit and debit cards are supported in Apple Pay, it also provides extreme security through touch and face id. Anyone owning an apple device can use Apple Pay on them for making payments. The card information is kept confidential while making payments. Apple Pay currently is available in more than 60 countries.
WhatsApp Pay
Mobile Wallet
WhatsApp Pay
Founded
February 2018 (India pilot)
Total Downloads
Over 1 billion (WhatsApp Messenger)
WhatsApp Pay – Best Wallet App in India
Launched in the year 2018, WhatsApp launched the chat payment service to allow users to complete any kind of transaction through WhatsApp. The secure way of the transaction enables people to make payments easy just like sending a message on WhatsApp. WhatsApp Pay has also been providing some great features like Cashback to attract more customers. This UPI-based payment service provides the option of sending and receiving money.
Freecharge
Mobile Wallet
Freecharge
Founded
August 2010
Total Downloads
50M+ (on Google Play Store)
Freecharge – Mobile Wallet App in India | Digital Wallets in India
Freecharge is a wallet app that is easy and fast to use for payments. You can recharge your phone, pay bills, and send money to friends. It also works with UPI payments and is popular for online shopping.
Freecharge gives good cashback offers and discounts, which users like. It lets you split bills, so sharing expenses with friends or family is simple. Many stores accept Freecharge for payments both online and in shops.
Airtel Money
Mobile Wallet
Airtel Money
Founded
2012 (initial launch)
Total Downloads
50M+ (on Google Play Store)
Airtel Money – Best Digital Wallets in India
Airtel Payments Bank Wallet is a special service that mixes a mobile wallet with digital banking. You can pay bills, recharge your phone, or send money using UPI. It gives you more interest on your balance than regular savings accounts.
The wallet works well with Airtel services and gives special discounts to Airtel users. You can also withdraw cash from ATMs without a card, using QR codes. It is safe and trusted for your digital banking needs.
Mobile Wallets’ Usage in India
Advantages Of Mobile Wallets
Mobile wallets got popular due to the advantages it offers. Here are listed some of the advantages of using mobile wallets in India
1. One-Click Pay
This is one of the most convenient ways to make payments since the user can pay via such wallets. The mobile wallet takes the information from your card (credit/debit) and makes payments directly or adds money to your wallet. This has offered easy accessibility to users.
2. Multiple Features and Uses
With easy accessibility, it can be used anytime, anywhere. These mobile wallets can be used in a jiffy, it’s just that you need a proper internet connection for your device. Also, your single mobile wallet account can be accessed on any of your devices like laptops, PC, or smartphones with authenticated verification.
3. Robust Security Features
Mobile wallets have tried hard to provide extensive safety and security. Almost more than half of the population has shifted from leather wallets to e-wallets for the protection of their money. Mobile wallets have also reduced the chance of daily theft or losing cash.
4. Several Benefits
They come up with several other benefits like loyalty programs, cashback, rewards, shopping benefits, and many more so that their customers stay happy. Simultaneously, users can also save money through heavy discounts and offers.
How funds in a Mobile Wallet are spent in India
Mobile Wallet vs Digital Wallet
Mobile Wallet
Digital Wallet
Definition
Mobile wallets are payment apps housed on mobile devices, like smartphones and wearables.
Consumers using digital wallets, may or may not interact with them on their smartphones.
Uses
Consumers mostly use a mobile wallet for in-person transactions.
Consumers mostly use a digital wallet for online shopping or purchases.
Examples
Some of the most popular mobile wallets are Apple pay, Samsung pay, etc.
Some of the most popular digital wallets are Paytm, Paypal, etc.
Limitations Of Mobile Wallets In India
Besides the advantages Mobile wallets in India offer in the payment service industry, it has some limitations which are listed below.
A limit is set on the amount that you can deposit in your mobile wallet. For instance, Paytm allows the amount of ₹20,000 in its wallet.
The number of merchants listed or having a tie-up with these wallets is limited. In that case, you would always need to carry some cash in urgency.
Sometimes, Infrastructure issues stand for a lot of lost transactions or common ‘server down’ problems.
Few times, some fraud calls can also cause a possibility of a mobile theft where your personal information is compromised.
One of the major concerns is that a person needs a smartphone to make online transactions possible and that too, with good internet connectivity. This alone has stood a major limit to many poor families, who still carry cash in their pockets.
More than 40% of respondents used a smartphone in India.
While these large numbers and large user bases indicate the growing need for secure, faster, and efficient transaction methods for the online marketplace. Regardless of what we’ve seen and read, top e-wallets in India have outweighed its concerns. The use of e-wallets has constantly increased due to obvious reasons and its surprising offers. Mobile wallets continue to gain prominence in smartphones and laptops across the globe and have dominated the discussions of new ways to pay.
A digital wallet sometimes called an e-wallet, is a service that allows you to pay for things, usually through a mobile phone app. It also stores a number of other items a traditional wallet would hold, such as a driver’s license, gift cards, tickets for entertainment events, and transportation passes.
What is a digital wallet used for?
A digital wallet (or e-wallet) is a software-based system that securely stores users’ payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology.
Which is better PhonePe or Google pay or Paytm?
Experts suggest that all three digital transaction apps, more or less, are equally secure. While Google’s brand image definitely does some good to Google Pay. Paytm, and PhonePe continue to be easy picks for others due to their many features.
How to get PhonePe cashback?
Steps to get PhonePe cashback:
Download PhonePe App.
Do the needful for PhonePe Login / Signup.
Set Your Virtual Payment Address (VPA)
Click On Bank Accounts From Menu &Link Your Bank Account.
Recharge Your Mobile.
Which Mobile wallet has highest market share in India?
Paytm has the largest market share in India followed by PhonePe and GooglePay.
What is the difference between Paytm vs PhonePe?
Paytm Allows transactions across multiple modes like wallets, UPI, and payment gateway. PhonePe has started its wallet service but it is widely used for its UPI-based transaction which doesn’t charge you for any transaction.
Which wallet app is best in India or write a few Mobile wallet examples?
In order to detect and prevent transaction fraud, the central government is collaborating with Third-Party Application Providers (TPAPs) such as Google Pay, PhonePe, and Paytm to create improved security measures.
The initiative’s goal is to stop fraudulent transactions using TPAPs. TPAP systems may cause minor delays and send out fraud alerts in order to facilitate this.
According to reports, the Centre is collaborating with third-party UPI apps like Google Pay, PhonePe, Paytm, and others to put in place improved security features that can instantly identify and stop questionable P2P and P2B transactions.
The campaign aims to reduce fraudulent transactions conducted through TPAPs, specifically targeting schemes that impact consumers with lesser levels of digital literacy, according to a media report that cited persons familiar with the situation.
Enhancing Security Checks
The government’s measure is intended to make sure that all transactions—regardless of their value—are subject to more stringent checks and balances, even if they take a few more seconds.
Platforms like Google Pay, Paytm, and others may purposefully create small delays, send fraud alerts, and ask customers for more confirmation before completing transactions that seem suspicious in order to make this easier.
A representative of the IT ministry informed a news outlet that the administration is using every signal it can. Even though it’s still early, the government hopes to find a tangible way to significantly reduce payment fraud via UPI apps.
Additionally, according to the official, Google Pay, PhonePe, and Paytm have implemented a risk-based strategy that enables them to limit or prevent transactions for individuals who are categorised as having medium, high, or extremely high financial risk.
According to a TPAP executive, they have collected enough signals to identify potentially dangerous transactions with the aid of artificial intelligence.
Online Payment and Bank Frauds on the Rise in India
Despite a sharp reduction in the number of reported cases, the Reserve Bank of India (RBI) recorded a sharp increase in the value of bank frauds for the fiscal year 2024–2025.
Across Indian banks and financial institutions, 23,953 fraud instances of INR 36,014 crore were reported; this represents an almost threefold increase in value compared to INR 12,230 crore the year before.
The categorisation of 122 fraud cases from previous years, valued at INR 18,674 crore, which were re-reported after a Supreme Court ruling in March 2023, is mostly to blame for the increase.
The majority of losses resulting from fraud were still borne by public sector banks (PSBs). Even while they reported fewer frauds than private lenders (6,935 incidents versus 14,233), the total amount involved was far larger, at INR 25,667 crore, or 71.3%.
Nearly 60% of all fraud cases involved private sector banks, which claimed losses of INR 10,088 crore. Although they continued to be modest participants in terms of fraud value, foreign banks, small finance banks, and payments banks consistently increased the number of instances.
The number of transactions using the Unified Payments Interface (UPI) increased 4.4% from 17.89 billion in April to 18.68 billion in May, setting a new record.
There were 33% more trades than the previous year. UPI transactions experienced a 2.2% month-over-month (MoM) decline in April. The National Payments Corporation of India (NPCI) reported that UPI transactions totalled INR 25.14 Lakh Cr in May, a 5% increase from INR 23.95 Lakh Cr in April.
Compared to 596 million in April, the average daily transaction count increased to 602 million in the reviewed month. In addition, INR 81,106 Cr was the average daily transaction value.
PhonePe and Google Pay Lead the Race
PhonePe and Google Pay are anticipated to remain the top two UPI players, as they have for years, even though the NPCI has not yet released the app-by-app data for the month of May.
Together, the two companies control around 80% of the UPI ecosystem’s market share, with Paytm coming in second with a roughly 7% stake in recent months. Of the 17.89 billion transactions in total, PhonePe logged 8.36 billion in April.
6.48 billion transactions of INR 8.42 lakh crore were registered by Google Pay. The competition is fierce outside of the top three players. Navi, CRED, super.money, Amazon Pay, and FamApp are just a few of the companies that keep fluctuating in the rankings.
Notably, over the past few years, the NPCI has been aiming to limit third-party application providers’ (TPAPs’) market share in the UPI ecosystem to 30%. The idea has, however, been repeatedly delayed; the most recent one was moved to December 31, 2026.
Industry Requesting for Zero Merchant Discount Rate
The industry is increasingly calling for zero merchant discount rates (MDR) on these transactions, even as UPI is expanding. Prime Minister Narendra Modi received a letter earlier this year from the Payment Councils of India (PCI) urging him to reevaluate the 0% MDR policy for RuPay and UPI transactions.
When banks or payment service providers handle digital transactions through UPI, they charge merchants a fee known as the MDR. To encourage digital payments across the nation, the price was reduced to zero in 2020. For large merchants exclusively, the PCI suggested charging an MDR of 0.30% for UPI.
The Startup Policy Forum (SPF) also endorsed the initiative. The payments sector has long maintained that the zero MDR regime prevents them from making money off of their services, which has an impact on infrastructure upgrade efforts.
The administration hasn’t made a decision on the subject yet, though. Vijay Shekhar Sharma, the founder and CEO of Paytm, recently stated that the implementation of MDR on UPI payments might lead to more competition.
The National Payments Corporation of India (NPCI) has announced a significant update to the Unified Payments Interface (UPI) system, part of a broad overhaul that would affect thousands of digital payment customers nationwide.
All UPI-based applications, including Google Pay, PhonePe, and Paytm, will stop using contact-saved identities and nicknames during transactions and instead only show the recipient’s official bank account name as of June 30, 2025.
Currently, the beneficiary’s name that appears when users initiate a UPI payment is frequently the one that is stored in their personal contact list. Despite its convenience, this approach has been shown to be open to abuse by hackers who use false names to hide their identities.
Authorities claim that the impending change is an explicit effort to reduce this kind of fraud and improve transaction transparency.
Bringing All Parameters Under One Umbrella
Users can now send money using a cellphone number, UPI ID, or QR code scan, and the name that appears on the screen before payment confirmation will only be the name associated with the recipient’s bank account.
Both Person to Person (P2P) and Person to Merchant (P2M) transactions will be subject to this modification in the same standardised manner. The process for making UPI payments is still the same; users can still start transactions with QR codes, UPI handles, or mobile numbers.
Before users press “Send”, however, they will see a completely different name—just the official account name—instead of “Raju Grocery”, “Mummy”, or “Cab Driver Singh”. The action is a component of NPCI’s larger initiatives to counteract the growing number of frauds involving UPI, many of which rely on identity confusion or impersonation.
The Move Tends to Bring Lot of Benefits
It is common for criminals to use well-known or reliable names to entice victims. Such fraud is made more difficult by substituting confirmed bank names for user-saved nicknames. It will now be easier for users to verify the recipient’s identification before approving payment.
There may be a significant drop in incorrect transfers to the incorrect contact, particularly among those with similar names. Users of digital payments are advised to take some simple safety measures as the shift draws closer.
Before making a payment, carefully check the name that is presented. Do not proceed if anything appears strange or suspicious. Contact customer service at your bank or payment app right away if you see any strange activity.
The UPI ecosystem in India has expanded rapidly, with over 1300 crore transactions occurring each month. However, vulnerability comes along with scale. As the country moves closer to a cashless economy, the NPCI’s most recent directive is viewed as a crucial course correction to protect digital trust.
A decisive step toward international expansion was taken by Paytm Cloud Technologies Ltd, a subsidiary of Indian fintech Paytm, with the incorporation of a new wholly owned subsidiary in the United Arab Emirates. Named Paytm Arab Payments LLC, the new entity was formed with an equity infusion of AED 8 million, equal to about USD 2.1 million or INR 18.41 crore, at an exchange rate from the time of reporting.
As per official documents, this subsidiary will center on the introduction of Paytm’s technology-based merchant payment apparatus and its financial services in the UAE market. The goal is to serve an increasingly digital finance-hungry region and to further Paytm’s global diversification strategy. More noteworthy is that this move doesn’t require any regulatory or governmental head nod, which means that Paytm seamlessly glides into the Middle Eastern financial world.
Broader Global Vision Unfolds
The international expansion of Paytm into the UAE is part of a wider global strategy, as it seeks to diversify far beyond its Indian base. In the UAE, as in Saudi Arabia and Singapore, subsidiaries will be set up that follow the legal requirements of those countries and carry out what Paytm calls “regulatory lite” operations. Paytm operates much like a bank, but isn’t licensed as one by the RBI. The company’s stated goal is to work under a structure in foreign markets that keeps it as close to a banking operation as possible, without crossing any lines.
The company has shown its willingness to explore many growth models as it pushes into international markets. This includes forming strategic partnerships, entering into local licensing arrangements, and making acquisitions. By founding Paytm Arab Payments LLC in Dubai, the company has taken the first concrete step along this path, putting it in a position to do business both in the Middle East and elsewhere in North Africa, while still trying to accomplish some of the same, albeit virtual, aims in the much larger opportunity that is India.
Refocusing After Regulatory Headwinds
This development also arrives just after Paytm re-established its core focus on the payments business. Last year, the company faced a work stoppage from the Reserve Bank of India (RBI) that gummed up the operation of its banking business and demanded specific corrections. Now Paytm has the authority of the RBI, and the company is back on track, but it is back on track in a way that emphasizes the very focus of the company pre-RBI work stoppage.
This path is bolstered by recent product introductions, especially the new and improved version of its soundbox payment device. This model, which has a real-time visual display, is actually the next-gen soundbox and a truly intelligent payment device. Merchants and customers now get real-time information through this device, making it not just a soundbox but a kind of pay station that talks to you.
Paytm Money got the go-ahead from SEBI earlier this year to function as a research analyst. This, too, is seen as the company working its way into wealth management, which, like insurance, is a sector in which tech companies have so far been largely unsuccessful. But service-based wealth management, which doesn’t require investment in technology to the degree that robo-advisors do, might provide Paytm with a smooth entry into a sector that already generates stable, fee-based revenues.
On 16 April, Paytm revealed that Vijay Shekhar Sharma, the company’s founder and CEO, had renounced 21 million employee stock options worth over INR 1,800 crore. This action came months after the Securities and Exchange Board of India (SEBI) had sent him show-cause notices for breaking the rules governing the granting of share-based employee benefits. Vijay Shekhar Sharma, the company’s chairman, managing director, and chief executive officer, notified the company in a letter dated April 16, 2025, that he had voluntarily renounced all 2,10,00,000 ESOPs that had been granted to him under the One 97 Employees Stock Option Scheme, 2019, with immediate effect, according to a regulatory filing made by Paytm to the stock exchanges.
How this will Change the Business Dynamics of Paytm?
According to the filing, the company’s ESOP programme has refunded the remaining unvested ESOPs to the ESOP pool, while some have been terminated. The business added that this action will lead to a one-time, non-cash acceleration of INR 492 crore in ESOP expenses in Q4 FY 2025, as well as a corresponding reduction in ESOP expenses in subsequent years. In addition, Paytm stated that when it releases its Q4 Q4FY25 results, it will provide information about its ESOP cost timeline. A year prior to Paytm’s 2021 IPO, Sharma held a 14.7% stake in the fintech company. He transferred 30.97 million shares to Axis Trustee Services, which operated on behalf of Sharma’s family trust, in order to lower his ownership to 9.1% and qualify for ESOP incentives. Due to suspected factual misrepresentation, Sharma and other board members who served during Paytm’s November 2021 IPO received notices from SEBI.
SEBI’s Move Forced Sharma to React
In August 2024, Paytm received a show-cause notice from SEBI for Vijay Shekhar Sharma’s ESOP grant, which violated the regulations governing share-based employee perks. Large shareholders who have the power to affect business decisions are prohibited from owning ESOPs under SEBI’s market regulations. The corporation made improvements to its ESOP plan in March, including tying ESOP vesting to the most recent appraisal exercise’s annual performance ratings. Additionally, Paytm has distributed ESOPs to qualified workers at least twice in the last six months and increased the size of its ESOP pool in recent months.
Since its listing in November 2021, One97 Communications, the parent company of Paytm, has never reported a positive EBITDA. Nonetheless, it has continuously emphasised EBITDA prior to ESOP expenditures as a crucial indicator. On May 30, 2025, the business is expected to release the results of the March quarter. An international news outlet reports that Paytm is anticipated to disclose an adjusted net loss of roughly INR 9 crore and an EBITDA of INR 64 crore on revenue of INR 2,051 crore. It recorded an EBITDA of INR 559 crore for FY24 (excluding ESOP charges).
Paytm (One97 Communications Ltd.), a digital payments startup, announced on 27 February that it has teamed up with Perplexity, a US-based artificial intelligence company, to incorporate AI-powered search features into its app. According to a release from Paytm, the partnership would enable customers to ask common enquiries, research subjects in their native tongue, and leverage AI-driven insights to make wise financial decisions. According to Paytm’s founder and CEO, Vijay Shekhar Sharma, the company is enabling millions of Indian users to benefit from artificial intelligence (AI) through Perplexity, which will make financial and knowledge services easier to use and more accessible.
Why Paytm Chooses Perplexity AI?
Known as an AI-powered “answer engine,” Perplexity provides users with sourced, real-time answers to their questions. According to the company, the integration of its technologies into the Paytm app is intended to assist customers in making well-informed decisions, especially when it comes to managing their money and examining market trends. Perplexity’s conversational ‘response engine’ uses real-time, reliable sources to provide users with in-line citations for their queries. Former employees of OpenAI, Meta, Quora, Bing, and Databricks launched the business in 2022. According to Aravind Srinivas, CEO and co-founder of Perplexity, the company’s AI-powered search technology will enable millions of people to get reliable, real-time answers so they can easily make educated judgements.
India’s Growing Digital Economy
India’s digital economy, which accounted for 11.74% of the country’s GDP in 2022–2023 (INR 31.64 lakh crore, or USD 402 billion), has become a major driver of economic growth. The digital economy, which employs 14.67 million people (2.55% of the total), is almost five times more productive than the overall economy, as per the central government’s data. The core digitally enabled industries, which include ICT services and the production of computers, communication devices, and electronic components, accounted for 7.83% of GVA (Gross Value Added), with digital platforms and intermediates contributing an additional 2%.
Additionally, 2% of GVA was added by digitisation in conventional industries like retail, education, and BFSI, demonstrating the widespread influence of digital transformation. By 2029–2030, the digital economy is expected to surpass manufacturing and agriculture in terms of its contribution of GVA, reaching 20%. Rapid AI use, cloud services, and the emergence of global capability centres (GCCs), of which 55% are located in India, are important growth drivers. Multinational firms created GCCs as offshore hubs to offer a range of services to their parent companies, such as business process management, IT support, and research and development.
By incorporating AI-powered search into the Paytm app, Paytm is tackling this issue and empowering users to ask common enquiries, research subjects in their native tongue, and make wise financial choices. This invention strengthens digital literacy and reaffirms our dedication to advancing technology for an India powered by AI and smarter.
The ministry of commerce and industry said in a statement on 26 February that the Department for Promotion of Industry and Internal Trade (DPIIT) and digital payments company Paytm have inked a memorandum of understanding (MoU) to promote innovation and quicken the expansion of fintech and manufacturing startups in India. Paytm will provide businesses with market access, financial opportunities, infrastructure support, and mentorship as part of the relationship.
According to the press announcement, the partnership’s goal is to assist fintech hardware entrepreneurs in developing and scaling payment and financial technology solutions by providing them with innovation assistance and mentorship. Through workshops and guidelines developed in partnership with government and industry entities, it will also offer regulatory and compliance support.
Offerings of the MoU
Through the partnership’s infrastructure and market access support, businesses may take advantage of Paytm‘s vast merchant network to test, validate, and improve their solutions. In front of senior representatives from both organisations, DPIIT Director Sumeet Kumar Jarangal and Paytm Founder and CEO Vijay Shekhar Sharma signed the Memorandum of Understanding. This collaboration with Paytm is an important step in bolstering India’s startup environment, according to DPIIT Joint Secretary Sanjiv. DPIIT wants to help entrepreneurs overcome obstacles, scale their businesses, and help India become a worldwide innovation hub by utilising Paytm’s fintech infrastructure and skills.
Paytm for Startups Initiative
Paytm will introduce specific programs to assist fintech hardware manufacturers, such as Soundbox and PoS/EDC device makers, in expanding effectively as part of its Paytm for Startups effort. Mentorship programs, financial access via investor connections and incubation programs, regulatory guidance through industry-focused workshops, and recurring tracking and effect evaluations are all part of the projects.
The Paytm Foundation will fund deep-tech startups in the fields of Mobility, agritech, Web3, and Climate Technology through its CSR division. According to Vijay Shekhar Sharma, the current period is the optimal moment for startups to begin and expand under the leadership of Prime Minister Narendra Modi. Paytm is dedicated to enabling business owners by providing access to state-of-the-art technology, financial support, and mentorship. Through this partnership, the company will guarantee that startups have the resources they need to thrive from the ground up.
Financial Dynamics of Paytm
Thanks to the rebound in its digital payments sector, the fintech giant reduced its consolidated net loss from INR 221.7 Cr in the December quarter of Q3 FY25 to INR 208.5 Cr, a 6% decrease. Additionally, Paytm’s operating revenue decreased 36% from INR 2,850.5 Cr in Q3 FY24 to INR 1,827.8 Cr in the reviewed quarter.
Nevertheless, Vijay Shekhar Sharma, Founder and CEO, stated that the fintech company is on course to achieve profitability in the upcoming quarter (Q1 FY26) in accordance with the management’s expectations. Additionally, Paytm CFO Madhur Deora stated on the Q3 FY25 earnings call that the business anticipates becoming profitable on an adjusted EBITDA basis within a quarter or two.
