India’s digital payments ecosystem continues to be dominated by PhonePe, which retained the top position in Unified Payments Interface (UPI) transactions in February with over 45% market share. The Walmart-backed fintech processed around 9.28 billion transactions worth ₹13.1 lakh crore during the month, reinforcing its leadership in the country’s rapidly expanding digital payments market.
Key Highlights
- PhonePe retained top position with over 45% share of Unified Payments Interface transactions in February.
- India’s digital payments ecosystem grows rapidly as UPI records billions of monthly transactions across consumer apps.
Data from the National Payments Corporation of India indicates that PhonePe accounted for 45.5% of total UPI transaction volume and nearly 48.8% of transaction value in February. This puts it significantly ahead of its closest competitors, Google Pay and Paytm, which hold the second and third positions respectively.
The dominance reflects the growing scale of India’s digital payments ecosystem. In February 2026 alone, UPI recorded more than 20 billion transactions worth about ₹26.8 lakh crore, highlighting the system’s role as the backbone of everyday digital commerce in the country.
Also Read: UPI in Jan: PhonePe Leads, CRED Slips, BHIM Gains Ground
PhonePe’s sustained lead is driven by its large merchant network, wide consumer adoption, and integration of services such as bill payments, insurance, and investment products within its app ecosystem. The platform has also been preparing for a potential public listing, which could become one of the most significant fintech IPOs in India.
With digital payments continuing to grow across urban and rural markets, competition among UPI apps is expected to intensify, even as PhonePe maintains a commanding share in the market.
