PhonePe Statistics 2025: Comprehensive Analysis of Growth and Market Dominance

In 2025, PhonePe continues its journey as a formidable leader in the digital payments landscape, shaping the way Indians transact every day. From neighborhood stores to online shopping, PhonePe has not only expanded its reach but also profoundly influenced the digital payments ecosystem in India. The company’s user-friendly interface, constant innovation, and strategic expansion have made it one of the most relied-on payment platforms. Let’s explore the latest PhonePe statistics and understand the platform’s pivotal role in India’s financial digitization.

Editor’s Choice: Key Milestones

In January 2025, PhonePe held a 48.4% share of UPI payments in India, maintaining its leadership position.
The total expenses of PhonePe increased by 31.3%, amounting to ₹7,756 crore in FY2023-24.
PhonePe’s market share in India’s Unified Payments Interface (UPI) transactions stands at approximately 48.4%.
Expenses related to payment processing grew by 75% to ₹1,166 crore, reflecting the increased transaction volume.
With a valuation of $12 billion, PhonePe stands as India’s most highly valued privately owned fintech firm.
Employee benefits accounted for 46.45% of PhonePe’s total expenses, with ESOP expenses comprising a significant portion.
As of 2025, PhonePe processes over 310 million online transactions daily, highlighting its robust infrastructure.

Age Distribution of PhonePe Website Users

The 25–34 age group dominates PhonePe’s website traffic, accounting for 37.29% of total users, the largest demographic by a significant margin.
Users aged 18–24 make up the second-largest group at 21.39%, highlighting strong traction among younger adults.
The 35–44 age bracket contributes 15.31%, showing moderate engagement from mid-career professionals.
Website usage decreases with age, as seen with the 45–54 group representing only 10.42% of users.
Seniors aged 55–64 form 8.89%, while the 65+ segment accounts for just 6.71% — the smallest share of any group.
Overall, 74% of PhonePe users fall between the ages of 18 and 44, emphasizing the platform’s strong appeal among millennials and Gen Z.

General PhonePe Statistics

PhonePe’s rise in India’s digital payments landscape is underpinned by substantial growth in user adoption and transaction volumes. Here’s a look at PhonePe’s current standing and metrics:

As of March 2024, PhonePe has registered over 550 million downloads, positioning it as a top app in the finance category in India’s app stores.
Daily active users (DAUs) on the platform are approximately 120 million, showcasing a robust daily engagement rate.
96% of Indian districts have a PhonePe presence, highlighting its wide reach across rural and urban areas alike.
Monthly transaction volume on PhonePe exceeds ₹8 trillion INR, showcasing its substantial market influence.
45% growth in active user base from 2023 to 2024, illustrating a continued upward trend in user acquisition.
45% of users on PhonePe are active daily, a strong engagement figure in the highly competitive digital payment sector.
PhonePe’s brand recall rate stands at 85%, reflecting its strong brand presence and familiarity among users in India.

UPI Market Share Breakdown

PhonePe held a dominant 48.4% share of the UPI market. This solidified its position as the leading UPI app in India by a wide margin.
Google Pay followed closely with a 37.2% market share. It remains the second most popular UPI platform in the country.
Paytm accounted for 7% of the UPI market. While trailing behind the leaders, it still holds a significant presence among users.
Navi captured 1.2% of the market. It represents a small but notable player in the growing digital payments space.
CRED held a 0.9% market share. It remains a niche app, primarily used by a specific segment of credit-savvy users.
Amazon Pay had a 0.6% share. Despite Amazon’s ecosystem, the payment arm has a limited UPI footprint.
SuperMoney also recorded a 0.6% market share. It shares similar adoption levels with Amazon Pay in the UPI space.
Others combined made up 4.1% of the market. This includes various smaller apps with limited reach and adoption.
Overall, PhonePe and Google Pay together controlled over 85% of the UPI market. This reflects a high concentration of usage among just two major platforms.

User Growth and Engagement Statistics

PhonePe’s user base and engagement metrics tell a story of consistent growth and strong user loyalty. Here’s an in-depth look at the app’s performance in user acquisition and engagement:

80 million new users joined PhonePe in 2023, indicating PhonePe’s appeal to first-time digital payment users and seasoned digital payers alike.
The user retention rate on the platform is approximately 74%, showcasing strong customer loyalty amid a competitive landscape.
PhonePe has recorded a 25% year-over-year increase in average transaction frequency per user.
Females make up 40% of the app’s user demographic in 2024, a slight increase from previous years, indicating growing adoption across gender lines.
Peak usage times occur from 9 AM to 12 PM and 5 PM to 8 PM, reflecting its use in daily routines and work-related transactions.
67% of PhonePe users are between 18 and 35 years old, which demonstrates its popularity among tech-savvy young adults.
Customer satisfaction score of 89% as of 2024, showcasing high levels of user satisfaction and positive experiences on the platform.

PhonePe Financial Performance – FY23 vs FY24

Operating Revenue increased from ₹2,914 Cr in 2023 to ₹5,064 Cr in 2024. This reflects a 73.8% growth, signaling strong top-line expansion.
Total Expenses rose from ₹5,907 Cr in 2023 to ₹7,756 Cr in 2024. The increase of nearly ₹1,849 Cr highlights PhonePe’s aggressive investment in operations.
Net Loss narrowed from ₹2,795 Cr in 2023 to ₹1,996 Cr in 2024. This indicates a progressive move toward profitability despite rising costs.

Revenue and Profitability Trends

PhonePe has seen impressive revenue growth as it diversifies its services and captures a more significant portion of the digital payments market. Here are some notable revenue statistics and trends for 2024:

Annual revenue for PhonePe in 2024 is projected to reach ₹5,000 crore, a 25% increase from ₹4,000 crore in 2023.
Advertising and merchant partnerships account for 30% of PhonePe’s total revenue, marking a shift towards monetizing its vast user base.
Transaction fees on mutual funds and insurance products have brought in ₹300 crore in Q1 2024, signaling successful diversification into financial services.
PhonePe’s net profitability improved by 20% year-over-year due to increased adoption of premium services, while maintaining lower operational costs.
₹10,000 crore total investments made by PhonePe in technology and user acquisition between 2020-2024, contributing to its growth and dominance in India.
PhonePe’s in-app advertisements and promotions generate ₹700 crore annually, reflecting the platform’s role in targeted digital marketing.
Projected revenue growth of 18% annually for the next three years, as PhonePe expands its service offerings and strengthens user engagement.

Transaction Volume and Total Payment Value (TPV)

PhonePe’s transaction volume and total payment value (TPV) statistics highlight the platform’s continued popularity and high usage among Indian users:

Monthly TPV on PhonePe exceeded ₹10 trillion as of March 2024, setting new records for transaction volume in the UPI ecosystem.
50% year-over-year increase in TPV from 2023, reflecting a surge in digital transactions.
The average transaction size on PhonePe is ₹500 for 2024, with variations seen across services like peer-to-peer (P2P) and merchant payments.
200 million transactions daily make PhonePe the most used payment app in India by transaction count.
B2B payments on PhonePe have grown by 40% in 2024, fueled by small businesses adopting digital payment solutions.
PhonePe’s recurring payments feature has seen 30 million active users, especially for utilities, telecom, and subscription services.
Cross-border transactions have seen a 10% rise in 2024, as PhonePe continues to expand services for international payments.

UPI Transaction Volume Share

PhonePe led the UPI space with a commanding 47% share of all transaction volumes. This reinforces its position as the top UPI payment app in India.
Google Pay followed with a strong 36% share, highlighting its continued dominance in digital payments alongside PhonePe.
Paytm captured 14% of the market. Despite being a legacy player, it now trails significantly behind the two market leaders.
Other UPI apps collectively made up just 3% of transactions. This emphasizes a highly concentrated market, with over 87% controlled by just PhonePe and Google Pay.

Market Share in the UPI Ecosystem

As India’s UPI (Unified Payments Interface) market continues to expand, PhonePe holds a dominant position in this ecosystem:

PhonePe holds a 47% market share in India’s UPI ecosystem, making it the largest player as of 2024.
70% of tier 2 and tier 3 city users prefer PhonePe, highlighting its reach beyond major urban areas.
PhonePe processes 3 out of every 5 UPI transactions, showcasing its widespread usage.
90% of merchants across India accept UPI payments via PhonePe, reinforcing its dominance in the retail and SME sectors.
50% growth in UPI market share between 2022 and 2024, positioning PhonePe as the go-to app for digital transactions.
16% of India’s UPI transactions occur on PhonePe during festive seasons, indicating high-volume spikes during key holidays.
PhonePe’s adoption rate in rural areas rose by 30% in 2024, supporting financial inclusion across diverse demographics.

Factors Contributing to UPI Transaction Growth

Several factors contribute to the rapid growth of UPI transactions on PhonePe, which is driving digital transformation across India:

Cashback and rewards programs have driven a 25% increase in transactions as of 2024, making PhonePe popular among users seeking financial incentives.
A seamless user interface and faster transaction processing contribute to a 35% higher user satisfaction rate compared to other apps.
90% of PhonePe’s customer support queries are resolved through AI-driven solutions, improving user experience and reducing friction.
Strategic partnerships with banks and financial institutions facilitate 24/7 transaction availability, even during banking hours or system downtimes.
PhonePe ATMs in partnership with local stores have provided cash-out options in over 100,000 locations, making it convenient for users in cash-reliant areas.
Over 500,000 rural merchants were onboarded in 2024, indicating PhonePe’s commitment to supporting small businesses and promoting digital payments in remote areas.
Collaboration with government initiatives on digital literacy has led to 20% more digital-first users joining PhonePe.

Expansion into Financial and Consumer Services

PhonePe’s foray into financial and consumer services has allowed it to diversify and strengthen its position beyond digital payments:

PhonePe’s insurance vertical has captured 25% of the digital insurance market as of 2024, covering products like health, life, and travel insurance.

Mutual fund investments on PhonePe rose by 30% year-over-year, with ₹500 crore in assets under management (AUM) as of Q1 2024.
PhonePe Switch, the app’s mini-app platform, hosts over 300 partner apps, providing users with seamless access to services like food delivery, travel booking, and e-commerce.
Gold investment products on PhonePe saw a 15% increase in adoption, with users investing in digital gold as a safe asset.
PhonePe’s wealth management services have garnered 3 million active users in 2024, marking its success in offering comprehensive financial solutions.
Personal loans launched in collaboration with partner banks have attracted over 1 million borrowers since their inception in 2023.
Expanded remittance services now support cross-border transactions for over 15 countries, further establishing PhonePe’s global reach.

Technological Innovations and Product Enhancements

PhonePe continuously innovates to enhance user experience and strengthen its technical capabilities, making it one of the most advanced payment platforms:

AI-driven fraud detection has reduced transaction fraud by 20% in 2024, contributing to a safer user experience.
Blockchain integration in data storage ensures a high level of data integrity, making PhonePe a leader in data security.
Voice-enabled payment feature launched in early 2024, allowing users to make payments with simple voice commands, catering to a more diverse demographic.
PhonePe Lite, a lighter version of the app, saw 10 million downloads within its first month, making the app accessible to users with low-end smartphones.
Near-field communication (NFC) payments support has seen 1 million transactions monthly, allowing for contactless payments at POS systems.
Enhanced customer support chatbot resolves 90% of user queries within minutes, resulting in a 20% reduction in call center volume.
Biometric authentication options, like fingerprint and facial recognition, offer added security for users, contributing to PhonePe’s high satisfaction rating.

Cyber-safety Measures

PhonePe places significant emphasis on cybersecurity to protect its users’ data and maintain their trust:

Two-factor authentication (2FA) is mandatory for all PhonePe accounts, ensuring robust security for every transaction.
24/7 cybersecurity team monitors real-time threats, reducing the potential for fraud and unauthorized access.
Advanced encryption protocols ensure that sensitive user information remains secure during transactions, with 256-bit encryption standards.
Daily security audits are conducted to identify vulnerabilities, helping maintain a 99.9% uptime for all services.
Over ₹1 crore was invested in cybersecurity training programs for employees, ensuring a well-trained workforce to handle digital threats.
Machine learning algorithms predict and block suspicious transactions, reducing instances of fraud by 15% in 2024.
User awareness campaigns on online safety practices reach 5 million users quarterly, empowering users to protect themselves from phishing and scams.

UPI Usage Patterns Across Indian City Tiers

In Tier 1 cities, 52% of UPI transactions are for merchant payments, while 36% are peer-to-peer (P2P), and 11% go toward recharges and bills. This shows a clear merchant-dominant usage in urban hubs.
In Tier 2 cities, 45% of transactions are merchant-related, with 41% being P2P and 14% for bill payments. There’s a more balanced mix of transaction types compared to metros.
In Tier 3 cities and beyond, 49% of UPI activity is peer-to-peer, making it the leading category. Merchant payments account for 32%, while 19% are used for recharges and bills, showing a shift toward personal transfers in less urbanized areas.

Recent Developments

PhonePe’s recent initiatives highlight its commitment to growth and innovation, positioning it as a future-ready digital financial platform:

PhonePe has initiated steps for its Indian stock market debut. The company reported a profit of ₹1.97 billion in FY 2024, with a 74% revenue increase, reaching ₹50 billion.
The 30% market share cap on UPI transactions has been postponed until December 2026, allowing PhonePe (47.8% market share) to continue its dominance.
PhonePe has introduced device tokenization, which replaces sensitive card data with a unique token, ensuring safer digital payments.
PhonePe has surrendered its NBFC-AA license, shifting its focus to partnering with existing Account Aggregators rather than operating independently in this space.
In January 2025, PhonePe became the first payments company to enter the quick commerce sector, aiming for aggressive growth over the next two years.

Conclusion

PhonePe’s journey from a simple payment platform to a comprehensive financial services provider underscores its pivotal role in India’s digital economy. As it continues to grow in terms of user base, transaction volume, and service offerings, PhonePe not only transforms the payments landscape but also drives financial inclusion across the country. By embracing technology and prioritizing security, PhonePe has established itself as a trusted and innovative force in the digital payments sector. With ambitious plans for further expansion and enhancements, PhonePe is well-positioned to lead India into a digital-first financial future.

Sources

G.S. College of Commerce and Economics Nagpur

Barry Elad

Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.