According to data from the National Payments Corporation of India (NPCI), Sachin Bansal’s fintech company Navi Finserv has surpassed Amazon Pay to become the fifth-largest UPI player in India, experiencing rapid growth.

Navi, a non-banking financial company based in Bengaluru, has seen its UPI transaction volumes increase significantly over the past six months. 

From the 27th position in March to the fifth position in August, the company’s UPI transactions surged from three million in March to 89 million in August, marking a 30-fold increase.

NPCI, which operates UPI, India’s widely used real-time payment system, has reported that Navi’s UPI transaction volumes grew by 30% from 69 million in July to 89 million in August. Navi introduced cashback offers for UPI payments in April, further contributing to its growth.

The top three UPI players—PhonePe, Google Pay, and Paytm—have maintained their positions for the past four years. Amazon Pay, which had a similar scale to Navi in July and a larger overall user base, experienced a decline in the number of transactions in August.

Meanwhile, WhatsApp Pay saw a 45% growth over the past six months, positioning itself as the second-highest among tier-two UPI apps.

Despite its remarkable growth, Navi’s market share in the UPI ecosystem stands at 0.6 %. In August, the top UPI players were PhonePe with a roughly 48% share, Google Pay with around 37%, and Paytm at a distant third with 7%. 

Navi’s app offers various financial products, such as instant personal loans, home loans, bill payments, insurance, digital gold, and mutual funds. Navi manufactures these products and is not a third-party distributor, unlike other fintech and UPI apps.

NPCI had initially planned to impose a market share cap to limit dominance but is likely to postpone the year-end deadline due to implementation challenges. The original plan aimed to ensure that no UPI app held more than 30 % of the market share. The top two players, PhonePe and Google Pay, collectively account for 85 % of UPI transactions.

NPCI has restructured its BHIM app as a separate company to expand its market share actively and appointed Lalitha Nataraj, a veteran banker, as its chief executive officer.

The growth of tier-two UPI apps has had minimal impact on the broader landscape. BHIM has experienced a decline in transactions over the last six months.

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