Axis Bank is poised to overtake Yes Bank as the country’s largest payment service provider (PSP) in the UPI ecosystem, according to National Payments Corporation of India (NPCI) data.

What Happened: Axis Bank is inching closer to Yes Bank, the current leader in the UPI PSP space. In August 2024, Yes Bank processed around 514 crore transactions as a PSP bank, while Axis Bank facilitated 513 crore transactions.

The difference between the two banks has now reduced to 1.3 crore transactions from over 150 crore a year ago.

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The surge in Axis Bank’s position can be traced back to three key factors. First, the bank has successfully strengthened its association with PhonePe, the largest UPI player in India.

Second, Google Pay, the second-largest UPI app in the country, has witnessed a jump in its UPI market share to 37% after falling in 2022, which has indirectly benefited Axis Bank, its main PSP partner.

Lastly, regulatory actions compelled Paytm to shift all the PSP banking services from its subsidiary, Paytm Payments Bank Limited, to Yes Bank, Axis Bank, HDFC Bank, and SBI.

Sanjeev Moghe, president and head of cards and payments at Axis Bank, commented, “Our UPI technology stack is one of the best apart from the resilience, fintechs see good value in partnering with us. And when they see that our success ratio is high, they drive a lot of traffic towards us.”

Axis Bank is anticipated to claim the top spot before the end of September.

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