India’s digital payments scene is booming, but there’s a catch. The UPI ecosystem, despite its rapid growth, is dominated by foreign-owned or influenced apps. A recent State Bank of India (SBI) report highlights this concern and calls for a strong, fully homegrown UPI app to truly leverage data and drive India-centric innovation.
Right now, three major players control the market. PhonePe leads with a staggering 8,931 million transactions in July 2025, worth Rs 12,20,141 crore. Google Pay follows with 6,923 million transactions worth Rs 8,91,297 crore. Paytm sits in third place with 1,366 million transactions valued at Rs 1,43,651 crore. Smaller apps like Navi and super.money lag far behind, processing just a fraction of these numbers.
The SBI report raises a critical point. This heavy concentration of transactions among a few apps could stifle local fintech innovation. While UPI has revolutionized digital payments, dependence on foreign-grown platforms might not be ideal for India’s long-term goals. Data control is becoming increasingly important, especially as financial transaction data fuels innovation in digital lending, insurance, and other fintech services.
The report emphasizes the need for a Desi Counter Intuitive App. Such an app would prioritize India’s unique requirements over global models. It would also ensure that transaction data remains within the country, safeguarding it and aligning fintech growth with local priorities.
At present, most leading UPI platforms have significant foreign ownership or influence. This could pose challenges as India moves towards leveraging data for its digital and financial systems. A homegrown solution would not only secure data but also foster innovation tailored to Indian needs.
The idea isn’t just about nationalism. It’s about practicality. A locally developed UPI app could better address the nuances of India’s diverse economy. From small vendors in rural areas to large urban businesses, a Desi app could offer features designed specifically for Indian users.
UPI has already transformed how India pays. But the next step is ensuring that the benefits of this transformation stay within the country. With data becoming a key asset, a homegrown UPI app could be the game-changer India needs.