PhonePe plans to enter into competitive stockbroking business just waiting for its license by SEBI. And according to market participant there are more two fintech companies in line to enter into this business. Paytm was the first to get license from SEBI. PhonePe grabbed 44 percent of the Unified Payments Interface (UPI) market by facilitating 1.19 billion UPI transactions worth Rs 2.31 lakh crore in March 2021, compared to closest rival Google Pay’s 35 percent share and 957 million transactions. The size of the Indian financial services market could touch around $340 billion in the next few years.
PhonePe said it sold over 500,000 insurance policies on its platform during the period April – August 2020. PhonePe entered into the insurance segment in January 2020.
Overall, UPI had registered 2731.68 million transactions worth Rs 5,04,886 crore or Rs 5.04 trillion in March 2021. Paytm, the third distant player in UPI, has recorded 344.99 million transactions worth Rs 38 thousand crore in the last month. PhonePe got this big due due to the massive adoption it is seeing in Tier-4,5,6 towns and talukas and a deep focus on driving merchant acceptance in these geographies. PhonePe is today accepted across 18 million kiranas in the country. PhonePe has to comply with new rules of National Payment Corporation of India for starting stock broking business. This fintech company has raised $700 million from Walmart in December 2020. They expect there is still growth in retail investment market. The main thing is the flat fee at which the trade takes place. Paytm flat fee is Rs 10 and while other brokers charges RS 20-25. The cheaper plans have attracted more investors.
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