NewKerala.com

Key Points

The SBI report raises concerns about India's reliance on foreign-owned UPI apps like PhonePe and Google Pay. It stresses the need for a homegrown alternative to safeguard financial data and drive local innovation. Currently, three major apps dominate over 80% of UPI transactions, limiting competition. A 'Desi Counter Intuitive App' could align digital payments with India's unique economic priorities.

Key Points: SBI Report Urges India to Develop Homegrown UPI App for Data Control

  • SBI warns of foreign dominance in UPI with PhonePe, Google Pay leading
  • Advocates for a fully Indian-owned UPI app for data sovereignty
  • Current top apps process over 80% of UPI transactions
  • Homegrown app could drive India-centric fintech innovation
2 min read

India needs a 'Desi Counter Intuitive UPI App' to truly leverage data: SBI Report

SBI highlights risks of foreign-dominated UPI apps, calls for a 'Desi Counter Intuitive App' to secure India's financial data and innovation.

"The need for a Desi Counter Intuitive App cannot be overemphasised as we move towards leveraging data – SBI Report"

New Delhi, August 18

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 overemphasised 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.

- ANI

Share this article:

Reader Comments

P
Priya S
While the idea is good, execution is key. Look at what happened to BHIM app - great concept but poor adoption. Government needs to partner with private players who understand tech better.
A
Arjun K
Data sovereignty is crucial in today's world. But will this new app be as user-friendly as PhonePe? That's my main concern. Most aunties and uncles I know struggle with anything beyond basic UPI.
S
Sarah B
As an NRI, I find this discussion fascinating. India's digital payment system is already ahead of many Western countries. A homegrown app could make it even better if done right!
V
Vikram M
The report misses one point - we need regional language support in these apps. My mother in village can't use English interfaces. A truly 'desi' app must work in all Indian languages.
K
Kavya N
Instead of creating new apps, why not mandate that existing UPI apps store all Indian transaction data within India? That would solve the data sovereignty issue without reinventing the wheel.
M
Michael C
Interesting perspective. In US we're still stuck with credit cards while India is debating advanced concepts like data sovereignty in digital payments. The world could learn from India's UPI model.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50