Amid Paytm Crisis, How Is Mukesh Ambani¡¯s Jio Planning To Enter The UPI Space?

At a time when crisis-hit Paytm is quickly losing its share in the UPI market after RBI¡¯s ban on Paytm Payments Bank, India¡¯s richest person Mukesh Ambani's Jio, which is already a prominent player in the Indian telecom sector, is planning to enter the UPI space.

How Mukesh Ambani¡¯s Jio Planning To Enter The UPI Space

jio upi soundbox/trak

Jio has made its latest move to enter the UPI payment market with the launch of Jio Soundbox, a feature similar to the Paytm Soundbox which we tend to frequently see and hear in retail locations while making payments.

This expansion is based on the company's current Jio Pay App, which incorporates Soundbox technology to expand its business reach. Jio Soundbox is about to roll out in retail locations as the trial phase has begun. In the rapidly expanding field of digital payments, this calculated move puts Mukesh Ambani's conglomerate squarely against well-established UPI sector players like Paytm, PhonePe, and Google Pay. Jio also plans to sweeten the pot by providing shop owners with alluring incentives, which could increase its allure and uptake.

As per ETNow report, the announcement of Jio's foray into UPI payments has caught many by surprise, as it can potentially intensify the competition in India¡¯s digital payment sector. Jio's deliberate move towards market dominance and diversification is demonstrated by its entry into the UPI payment market. Jio wants to take a big chunk of the growing digital payment ecosystem by making use of its current infrastructure and technological prowess. This action demonstrates Jio's dedication to innovation and its unwavering search for expansion prospects in India's quickly changing digital market.

1210 Crore UPI Transactions Happened In February 2024

upi/twitter

As per National Payments Corporation of India (NPCI).data released this month, UPI transactions worth Rs 18.28-lakh crore were processed during February 2024. The number of transactions on the UPI network stood at 1,210 crore.

Also Read: How To Reverse UPI Payment Mistakenly Made To Wrong ID

Crisis-Hit Paytm Losing Its UPI Market Share

paytm /Fortune India

Earlier this month it was reported that Paytm's UPI market share had crashed to 11 percent in February compared to the 11.8 percent it had in January before the payments bank crisis started. And the bigger challenge is that from March 15th, Paytm will have to function as a third-party application provider (TPAP) just like its competitors PhonePe and Google Pay. This is in contrast with the role of a payments bank app, which Paytm Payments Bank was, until now. The transition is likely to see a further drop in the market share of Paytm in the UPI sector.

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