YES Bank, which is the bank partner for PhonePe’s UPI service, reported 20% UPI market share, in terms of volumes, during FY18, adding that the company reported a 33x growth in the financial year. It hasn’t disclosed the UPI market share for the month of March; we calculated, and there were a total of 914.150 UPI transactions in FY18. Thus, YES Bank (and thus PhonePe) accounted for approximately 182.83 million UPI transactions in FY18. Last quarter, YES Bank reported that it had 15% UPI market share, and around 22.4 million transactions.
Note that UPI numbers are not entirely indicative of organic usage: users are gaming cashbacks on offer to make money, and companies are using it to show higher growth. There was a controversy in March, when the CEO of PhonePe, YES Bank’s UPI partner, called out Paytm claim of being the largest player on the Unified Payments Interface (UPI) platform, as “uni-dimensional and misleading”; the company said in a blog post that the high number of transactions on Paytm was “simply not representative of normal user behaviour on the UPI network”, and
“Just 40,000 unique consumers did 500+ transactions each in February on Paytm. Paytm’s average transaction value is less than Rs 40. In contrast, 6,000,000 unique customers did 5 transactions each in February on PhonePe. Our average transaction value is over Rs1,800.”
In terms of merchant payments, YES Bank (hence PhonePe) claims the largest market share in UPI merchant payments, of around 72%; this was around 75% market share last quarter.
The total YES Bank UPI registered user base has crossed 30 million, which should give us an indication of PhonePe’s registered user base. YES Bank claims to have merchant base of over 80,000.
5.1 million AEPS transactions
Aadhaar Enabled Payments Service: YES Bank “successfully processed 51 lakh (5.1 million) AEPS transactions, within just three months of operationalization. Enabled 40,000+ Business Correspondent Agents for successfully providing AEPS services”. YES Bank has 0.19 million business correspondents agents employed.
It had launched AEPS in partnership Nearby Technologies in January 2018. “This has enabled our 2,000 Business Correspondent Agents for Aadhaar based Cash Withdrawals & Cash Deposits”, the company had said then, adding that it enables “card less and PIN-less Aadhaar ATM service.” and “Using the PayNEARBY mobile application on a smartphone, a Retailer can become an Aadhaar ATM / Aadhaar Bank Branch for cash withdrawals and deposits by a customer. ” Cash withdrawal and other transactions are made possible by simply using Aadhaar Number and fingerprint.
- API Banking: YES Bank says that it’s the first Indian bank to offer API Banking solutions to Corporate & SME customers, and has over 480 corporates on the API Banking platform.
- IMPS: YES Bank claimed to be top Remitter Bank within peer group and #2 across Industry, for IMPS transactions as per NPCI, for FY18. Volumes witnessed 155% growth y-o-y
- Mobile app registrations: increased 2.5x times; Transactions increased 288% by volume and 341% by value. YoY 76% are active customers in last 3 months
- Tablet Banking: 4000+ accounts successfully opened through tablet banking
- Chatbot: has resolved 0.5 million queries since launch