Monthly active users on merchant apps for Paytm and PhonePe have stagnated since late 2023, sitting at roughly 14 million and 15 million respectively, even as their combined registered merchant base reached ~47 million and is still growing at 10–15% annually.
Assuming ~75% of the combined installed device base of ~23 million are active, and an 80-90% overlap between the two platforms’ merchant bases, device penetration among registered merchants is already at 32-35%, Bernstein estimates.
Further reading:
Indian Payments’ Most Durable Revenue Line?
PhonePe’s $15 Billion IPO and the Cost of Building on Government Rails