India needs a 'Desi Counter Intuitive UPI App' to truly leverage data: SBI Report
A State Bank of India report suggests India requires a domestic UPI application. This app will help leverage data and reduce dependence on foreign platforms. Currently, PhonePe leads in UPI transactions, followed by Google Pay and Paytm. The report highlights that concentrating transactions among a few apps may hinder India-centric fintech innovation.
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SBI's report noted that the higher concentration of transactions amongst a few apps could restrict India-centric fintech innovation going forward.
India needs a fully homegrown dominant UPI app to truly leverage data rather than remain dependent on foreign-grown payment platforms, according to a report by the State Bank of India (SBI).The report highlighted that the country's UPI ecosystem is currently dominated by a handful of third-party app providers (TPAPs), with PhonePe, Google Pay, and Paytm leading both in transaction volume and value.
It stated, "The need for a Desi Counter Intuitive App cannot be over-emphasised as we move towards leveraging data".As per the data for July 2025, PhonePe has emerged as the clear leader in the UPI space. The app recorded a massive 8,931 million transactions in volume and transactions worth Rs 12,20,141 crore in value.Google Pay was the second-largest player, with 6,923 million transactions in volume and a total transaction value of Rs 8,91,297 crore. Paytm stood in third place, recording 1,366 million transactions in volume and a value of Rs 1,43,651 crore.
Other players such as Navi and super.money reported much smaller numbers. Navi processed 444 million transactions worth Rs 23,563 crore, while super.money handled 253 million transactions with a value of Rs 9,019 crore.The report noted that this higher concentration of transactions amongst a few apps could restrict India-centric fintech innovation going forward.While the UPI ecosystem has grown rapidly and transformed digital payments, the lack of a strong, fully indigenous app could pose long-term challenges in terms of data control and innovation.The report highlighted the importance of creating a "Desi Counter Intuitive App" that focuses on India's unique requirements rather than simply following global models.The report said that the need for such an app cannot be overemphasized as India moves towards leveraging data in its digital and financial systems.At present, UPI data is concentrated with a few large players, and most of these platforms have strong foreign ownership or influence.This, the report cautioned, may not be ideal for India in the long run, especially when financial transaction data is emerging as a critical driver of innovation in digital lending, insurance, and other fintech services.The report concluded that a fully homegrown UPI app would not only help in safeguarding transaction data but also ensure that fintech innovation in the country grows in a way that is aligned with India's needs and priorities.
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