Why people don’t change their UPI apps even when they hate them

12/30/24 • 9 min

Remember that time in 2022 when India’s top digital payments companies Phonepe, Paytm*, and Bharatpe were in a no-holds-barred turf war? Looking back, it seemed like there was news almost every other day about some tiff between the three market leaders. In fact, former managing director of Bharatpe, Ashneer Grover, has spoken on record about “street fights” between companies’ employees over QR codes.

A little more than two years later, there’s only calm. QR code scuffles are over. No one is beating each other up.

Both the peer-to-merchant and peer-to-peer payments space have settled down into a tripartite peace. Phonepe, Google Pay, and Paytm—in order of market share—are the clear leaders. This raises some interesting questions: How many UPI apps do you have on your phone? And do you have a favourite one? We may have multiple, but only one of them is ever really used. No amount of cashbacks or fancy user experiences make people want to switch to something else.

Is it brand loyalty that is preventing users from churning out of old platforms and into new ones?

A former Paytm executive told The Ken recently, “There is zero brand loyalty for UPI payments apps...”

Well then, what is happening?

*Paytm founder Vijay Shekhar Sharma is an investor in The Ken

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

A little more than two years later, there’s only calm. QR code scuffles are over. No one is beating each other up.

Is it brand loyalty that is preventing users from churning out of old platforms and into new ones?

A former Paytm executive told The Ken recently, “There is zero brand loyalty for UPI payments apps...”

Well then, what is happening?

*Paytm founder Vijay Shekhar Sharma is an investor in The Ken

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

Previous Episode

Daybreak 2024 — Episodes that soared and stumbled

As 2024 draws to a close, Daybreak hosts Snigdha and Rahel look back at some of their biggest hits and misses this year.

Check out the episodes that made it to their round up.

Hits —

Rahel's choice: Successful Women are Freezing Their Eggs and That's on men
Snigdha's choice: Why India's Biggest Employer of Female Gig Workers Refuses to listen to its own workforce
Audience choice: What do women really want? A F*** off fund

Misses —

Rahel's choice: Are run clubs like rehab for the chronically online?
Snigdha's choice: Why aren't we scared of chemicals in our skincare anymore?
Audience choice: How India's 40-somethings are redefining career longevity?

And that's a wrap! We will be back with new episodes next year.

Stay tuned!

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

Next Episode

You can buy an EV in China. But can you afford to insure it?

*This episode was originally published on September 24, 2024

Half of the world’s electric cars are on China’s roads, thanks to a wave of smart incentives for both consumers and manufacturers, such as tax breaks and purchase subsidies. The payoff is tangible: the smog that once shrouded some major cities has lifted, and road noise has dropped significantly.

But it brought unexpected costs and challenges that nobody saw coming.

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Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.