India Urged to Develop Indigenous UPI App Amid Foreign Dominance: SBI Report

A State Bank of India report stresses the need for a fully homegrown UPI app to reduce dependence on foreign platforms, amid concerns over data control and fintech innovation. Dominance by PhonePe, Google Pay, and Paytm could hinder India-centric growth in digital payments, the report highlights.

In a recent report, the State Bank of India (SBI) has pointed out the pressing need for a fully indigenous Unified Payments Interface (UPI) app to reduce the country's reliance on foreign payment platforms. According to the report, the current UPI ecosystem is dominated by a few third-party application providers (TPAPs), including PhonePe, Google Pay, and Paytm, which monopolize both transaction volume and value.

PhonePe has emerged as the clear frontrunner as of July 2025, boasting a colossal 8,931 million transactions in volume and transactions worth Rs 12,20,141 crore, the report indicated. Google Pay follows, handling 6,923 million transactions and recording a total transaction value of Rs 8,91,297 crore. Paytm came in third, securing 1,366 million transactions valued at Rs 1,43,651 crore. Other smaller players, like Navi and super.money, reported substantially lower figures.

The concentration of transactions among these major apps may stifle India-centric fintech innovation, according to the report. While the UPI ecosystem continues to thrive, the lack of a robust, fully homegrown app could impede future innovation and data control, making the case for a 'Desi Counter Intuitive App' to better align with India's data-driven financial strategies. (ANI)

(With inputs from agencies.)