The top two UPI players — PhonePe and Google Pay — continued to lose market share for the seventh straight month, even as monthly UPI transactions hit an all-time high in December 2025. Although IPO-bound PhonePe continued to lead the UPI race, with its transaction count growing sharply to 980.1 Cr transactions worth INR 13.61 Lakh Cr. Despite the growth, its market share gradually declined to 45.30% from 46.15% in the previous month. This is the seventh consecutive month when PhonePe has lost market share. Its closest competitor, Google Pay, has also seen an erosion of market share since April. While month-on-month (MoM) transaction count for the company increased 5% to 749.7 Cr transactions worth INR 9.58 Lakh Cr, its market share declined to 34.6% in the month under review from 34.8% in November. Meanwhile, Vijay Shekhar Sharma-led Paytm, which had shown signs of recovery in the UPI race recently, also pared with some market share in December. While the fintech player was gaining market share in the past few months, it saw a slight decline to 7.6% share in December, from 7.7% in the previous month. However, transaction count also jumped 5% to 165.4 Cr transactions worth 1.76 Lakh… Read MoreInc42 Media
