PhonePe, BHIM, and Google Pay experience growth as consumers seek alternatives amid regulatory constraints
Following the Reserve Bank of India’s (RBI) order restricting Paytm Payments Bank from accepting new deposits or top-ups, the digital payments landscape in India has witnessed a significant shift. Competitors such as PhonePe, BHIM, and Google Pay have seen a surge in app downloads, indicating a growing trend among consumers to explore alternative services.
As per recent reports, PhonePe, in particular, has experienced substantial growth, with 2.79 lakh Android downloads on February 3 alone, marking a 45% increase week-on-week. The company’s intensified marketing efforts have propelled it to the top spot in the free apps category on both the Google Play Store and Apple App Store in India. Moreover, there has been a significant rise in the app rankings of PhonePe Business, indicating a growing popularity among merchants.
Similarly, the National Payments Corporation of India’s (NPCI) BHIM app recorded 1.35 lakh Android downloads on February 3, reflecting a 21.5% increase compared to the previous week. Google Pay, although experiencing a more modest growth rate, saw a 4.9% increase in Android downloads on February 3.
These developments coincide with the RBI’s decision to restrict Paytm Payments Bank from offering a range of banking services, including deposits, FASTag, and credit transactions, effective February 29, 2024.
Consequently, Paytm’s app rankings have declined, with the company now occupying the 40th position in the free apps category on the Google Play Store in India, compared to its 18th position on January 31. Similarly, on the App Store, Paytm has slipped to the 27th position from its previous 15th position on January 31.
