What market share does Axis Bank hold in the UPI Payer Payment service Provider (PSP) space as of Q2 FY25?

The correct answer is ~31%.

Key Points

• Axis Bank holds a significant market share of ~31% in the UPI Payer Payment Service Provider (PSP) space as of Q2 FY25.
• UPI (Unified Payments Interface) is a real-time payment system developed by National Payments Corporation of India (NPCI) to facilitate inter-bank transactions.
• Axis Bank has maintained its dominant position in the UPI ecosystem through strategic collaborations with fintech companies and merchants.
• The bank's technological advancements and robust infrastructure have contributed to its high market share in UPI PSP services.
• UPI transactions continue to grow rapidly in India, with Axis Bank playing a crucial role as one of the leading PSPs.

Additional Information

• Unified Payments Interface (UPI):
  • UPI is a real-time payment system developed by NPCI that allows users to link multiple bank accounts in a single mobile app for seamless payments.
  • It operates on a highly secure two-factor authentication system, combining mobile number and MPIN.
  • UPI has revolutionized digital payments in India, enabling instant transfers and high scalability.
• Payment Service Provider (PSP):
  • PSPs are banks or financial institutions that facilitate UPI transactions by offering a platform for payment initiation and processing.
  • PSPs play a critical role in ensuring the smooth functioning of UPI transactions between payers and payees.
• NPCI (National Payments Corporation of India):
  • NPCI is an umbrella organization for operating retail payment systems in India.
  • It was established in 2008 under the guidance of the Reserve Bank of India (RBI) and Indian Banks' Association (IBA).
  • NPCI oversees UPI, RuPay, IMPS, and other payment systems, ensuring interoperability and efficiency.
• Growth of UPI Transactions:
  • UPI transactions have shown exponential growth, reaching billions of monthly transactions, driven by digital adoption.
  • The ease of use, zero transaction fees, and widespread merchant acceptance have contributed to its popularity.