Paytm has increased its share of India’s Unified Payments Interface (UPI) transactions to 8.1% in September 2026, up from 7.1% two years earlier, marking a gradual recovery after regulatory restrictions disrupted its payments business in early 2024. The improvement comes as the fintech company rebuilds its customer base, expands merchant services and competes with established players and newer digital payment apps.
According to data from the National Payments Corporation of India (NPCI), Paytm processed approximately 1.94 billion UPI transactions in September 2026, compared with 1.06 billion in September 2024. Its transaction value also increased substantially during the period. However, the company remains well behind PhonePe and Google Pay, which together account for nearly 78% of UPI transaction volumes.
Paytm UPI Market Share Increases to 8.1%
Paytm’s recovery is visible in both its transaction volumes and market share.
In September 2024, the company accounted for 7.1% of UPI transactions. By September 2026, that figure had increased to 8.1%, representing a gain of approximately one percentage point over two years.
The company processed 1.94 billion transactions in September 2026, compared with 1.06 billion transactions during the same month in 2024. This represents growth of approximately 83%.
The value of transactions also increased from ₹1.13 lakh crore to ₹2.05 lakh crore. Paytm’s share of total UPI transaction value rose from approximately 5.5% to nearly 7%.
| Metric | September 2024 | September 2026 |
|---|---|---|
| UPI transaction volume | 1.06 billion | 1.94 billion |
| Transaction value | ₹1.13 lakh crore | ₹2.05 lakh crore |
| Market share by volume | 7.1% | 8.1% |
| Market share by value | Approximately 5.5% | Nearly 7% |
The figures show that Paytm’s transaction activity has expanded considerably. However, the increase in market share has been more modest because India’s overall UPI ecosystem has also grown rapidly.
RBI Restrictions Triggered Paytm’s Market Share Decline
Paytm’s difficulties began after the Reserve Bank of India announced restrictions on Paytm Payments Bank (PPBL) on January 31, 2024.
The regulatory action affected several services connected to the bank, including banking operations, FASTag-related services and its role in Paytm’s UPI ecosystem.
Before the restrictions, Paytm relied on Paytm Payments Bank for important parts of its payments infrastructure. The company subsequently had to reorganise its UPI operations and transition to a third-party application provider (TPAP) model.
Under this arrangement, Paytm partnered with several banks to continue offering UPI services. These included:
- Axis Bank
- HDFC Bank
- State Bank of India
- Yes Bank
The transition required changes to the banking infrastructure supporting Paytm’s UPI operations. Existing customers also had to migrate from their previous @paytm UPI handles to bank-linked handles.
The disruption affected customer activity and market share. Paytm’s share of UPI transaction volumes declined from 11.8% in January 2024 to approximately 6.7% in March 2025.
The subsequent increase to 8.1% indicates that the company has recovered some of the ground it lost, although it has not yet returned to its earlier market position.
Monthly Transacting Users Recover to 8.5 Crore
Paytm has also made progress in rebuilding its monthly transacting user base.
The company’s monthly transacting users (MTUs) reached approximately 10 crore at their peak during the December quarter of FY24. Following the regulatory disruption, the number declined to around 7 crore.
By the end of the September 2026 quarter, Paytm had recovered to approximately 8.5 crore monthly transacting users.
This recovery is important because an active customer base supports transaction growth and creates opportunities to introduce additional financial services.
However, the current figure remains below the company’s earlier peak. Continued user acquisition and customer retention will therefore be important for sustaining its recovery.
Merchant Business and Soundbox Network Support Growth
Merchant payments remain an important part of Paytm’s business model.
The company’s merchant gross merchandise value (GMV) increased by approximately 40% over three years, rising from around ₹5 lakh crore in the December quarter of FY24 to ₹7.1 lakh crore in the September quarter of FY27.
GMV represents the total value of transactions processed through a platform or business. For Paytm, merchant transaction activity provides opportunities to generate revenue through payment services and related products.
The company has also expanded its network of payment devices.
Its soundbox subscription base increased to approximately 1.64 crore devices in the September 2026 quarter, compared with around 1.06 crore at the end of the December quarter of FY24.
Soundboxes are devices that provide audio confirmation when merchants receive digital payments. They help businesses verify transactions without repeatedly checking their smartphones.
The expansion of this network strengthens Paytm’s relationship with merchants and creates opportunities to generate recurring subscription revenue.
PhonePe and Google Pay Continue to Dominate UPI
Despite Paytm’s recovery, India’s UPI market remains highly concentrated.
PhonePe and Google Pay continue to control the largest portions of transaction volumes. Together, they accounted for approximately 77.8% of UPI transactions in September 2026.
The September market-share distribution was approximately:
| UPI application | Market share |
|---|---|
| PhonePe | 45.6% |
| Google Pay | 32.2% |
| Paytm | 8.1% |
| Navi | 4.8% |
| super.money | 1.7% |
PhonePe remains the largest UPI application, followed by Google Pay. Paytm holds the third position, but the gap between it and the two market leaders remains substantial.
For Paytm, increasing market share will require more than retaining existing users. It will need to attract new customers, encourage higher transaction frequency and strengthen its merchant acceptance network.
Newer UPI Apps Increase Competitive Pressure
Paytm is also facing competition from newer digital payment platforms.
Navi, backed by entrepreneur Sachin Bansal, has expanded its presence in the UPI market. Its share of transaction volumes reached approximately 4.8% in September 2026, compared with a negligible presence two years earlier.
Flipkart-backed super.money has also entered the market and built a share of approximately 1.7%.
Other competitors include BHIM, FamApp and WhatsApp. These platforms are attempting to attract customers through cashback offers, digital payment features and opportunities to cross-sell financial products.
The competition is not limited to transaction processing. Payment companies are also looking to build broader financial services businesses through products such as lending, insurance and other merchant-focused services.
Paytm pioneered several elements of this broader fintech model in India, but competitors are now pursuing similar opportunities.
Paytm Reports Six Consecutive Quarters of Net Profitability
Alongside its market-share recovery, Paytm has also improved its financial performance.
The company has reported six consecutive quarters of net profitability, indicating progress in controlling costs and improving the economics of its business.
This is an important development because payment platforms operate in a competitive market where acquiring and retaining customers can require substantial spending.
Paytm’s merchant subscriptions, financial services distribution and other business activities provide revenue opportunities beyond basic UPI transactions.
Nevertheless, sustained profitability will depend on its ability to increase revenue while managing customer acquisition costs, technology expenses and operating expenditure.
The Bigger Picture
Paytm’s recovery highlights how regulatory intervention can reshape competition in India’s digital payments industry. The restrictions on Paytm Payments Bank forced the company to rebuild parts of its payments infrastructure, migrate customers and establish banking partnerships. Although its UPI market share has improved, the experience demonstrates how dependent digital payment platforms can be on banking relationships and regulatory permissions.
The wider UPI market is also entering a more competitive phase. Established companies are defending their positions while newer platforms are attracting users through incentives and additional financial services. For Paytm, the challenge is to turn its recovering customer base and merchant network into sustainable market-share gains and consistent profitability.
Looking Ahead
Paytm’s increase in UPI market share to 8.1% represents meaningful progress after the disruption of 2024. Its transaction volumes, transaction value, monthly active users and soundbox subscriptions have all improved, suggesting that its payments business is gradually rebuilding. However, the company still has considerable ground to recover before reaching its earlier market position.
The next phase will depend on whether Paytm can attract new users, increase merchant activity and compete effectively with PhonePe, Google Pay and emerging payment platforms. Its ability to maintain profitability while expanding its payments ecosystem will be just as important as gaining market share. The September 2026 figures show a recovery, but the longer-term competitive position remains a work in progress.
SEO Metadata
SEO Title: Paytm UPI Market Share Rises to 8.1% in Two Years
Meta Description: Paytm’s UPI market share increased to 8.1% in September 2026 as transactions reached 1.94 billion, marking a recovery after the 2024 RBI restrictions.
URL Slug: paytm-upi-market-share-rises-8-percent-two-years
Focus Keyphrase: Paytm UPI market share
Secondary Keywords: Paytm UPI transactions, Paytm payments business, UPI market share 2026, NPCI UPI data, Paytm monthly transacting users, PhonePe Google Pay market share
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