Fintech platform Navi, co-founded by Sachin Bansal, achieved a milestone in October 2024 by overtaking Cred to become India’s fourth-largest UPI app. According to the National Payments Corporation of India (NPCI), Navi recorded 158 million transactions, reflecting a 31% growth from September’s 120 million. This achievement came despite reducing user incentives like cashback.
Meanwhile, Cred, led by Kunal Shah, registered 152 million transactions, up from 140 million in September. Both apps now hold 1% of India’s UPI market, with market leaders PhonePe (48%), Google Pay (37%), and Paytm (7%) still dominating the space.
Festive Season Boosts UPI Growth
The festive season contributed to an 11% increase in UPI transaction volumes and a 14% growth in transaction value. Newer entrants like Flipkart’s super.money saw exceptional growth, doubling transactions to 50 million in October, capturing a 0.3% market share. This reflects rising competition among UPI players.
Navi’s Strategy and Market Resilience
Navi has prioritized in-house financial products such as personal loans, home loans, and digital gold rather than relying on third-party offerings. Despite the Reserve Bank of India (RBI) imposing restrictions on Navi Finserv’s lending operations in October, UPI transactions on Navi remained unaffected.
The platform’s rapid growth stems from its focus on product innovation and user-centric strategies, solidifying its position in India’s highly competitive fintech landscape.
Market Share Cap Challenges
The NPCI’s proposed market cap policy, intended to curb the dominance of apps like PhonePe and Google Pay by limiting individual market shares to 30%, faces delays. Together, these apps currently control 85% of UPI transactions, posing significant challenges for smaller players like Navi and super.money to gain ground.
BHIM and Tier-Two UPI App Development
To encourage competition, the NPCI has spun off its BHIM app into a separate entity, appointing Lalitha Nataraj as CEO. However, tier-two UPI apps have yet to significantly impact the larger ecosystem.
Navi’s growth underscores its ability to adapt and thrive in a rapidly evolving market, offering a glimpse into the future of India’s digital payment industry.
