PhonePe Opens Data Firehose: A Game Changer for Indian Payments

PhonePe Launches Pulse: A New Data Insights Platform

PhonePe, a leading digital payments provider in India, has announced the launch of Pulse on Thursday. This new product is offered at no cost and is designed to provide valuable insights into digital payment trends within the world’s second-largest internet market.

Data Backing and Scope

The insights offered by Pulse are based on a substantial volume of transactions – over 22 billion – processed by the Flipkart-backed startup over the past five years. This extensive data foundation allows for a uniquely detailed understanding of the growth of digital payments and financial services across India.

Pulse delivers granular data, extending to the level of Indian states, districts, and over 19,000 postal codes. It details transaction types, differentiating between user-to-user transfers, payments to merchants, and utility bill settlements.

Data Privacy and Accessibility

PhonePe has ensured user privacy by anonymizing all data before publication. New data and analyses will be released on a regular basis, with a comprehensive annual report also planned. The inaugural report was published concurrently with the platform launch.

Furthermore, Sameer Nigam, co-founder and CEO of PhonePe, revealed that the insights are accessible via an API. This allows academics, analysts, government entities, policymakers, regulatory bodies, and other stakeholders to utilize the data without charge.

The Rise of Digital Payments in India

Over the last five years, more than 100 million Indians have embraced digital transactions. This shift was significantly influenced by the demonetization of high-value currency notes in 2016 and the subsequent development of the UPI rails by Indian retail banks, fostering interoperability between different payment applications.

UPI has become the dominant method for digital payments in India, with PhonePe currently holding over 40% of the market share.

Market Competition and Industry Impact

The rapid growth of mobile payments in India has attracted considerable interest from global technology companies, including Google, Facebook, Amazon, and Samsung, all of whom have launched their own payment solutions in the country. Credit Suisse estimates the Indian mobile payments market will reach a value of $1 trillion by 2023.

Rationale Behind Pulse

The development of Pulse originated within PhonePe’s communications team, driven by a need for clarity regarding digital payment behaviors. Executives noted a prevalence of unsubstantiated claims within the industry and sought to provide a reliable data source.

“Initially, when we launched PhonePe five years ago, obtaining dependable, granular data on digital payment trends nationwide proved challenging,” stated Nigam. “We committed to making our data accessible if we achieved success and amassed sufficient data on our platform, enabling deeper insights into the Indian payments landscape.”

Competitive Considerations

Addressing concerns about potentially diminishing competitive advantage, Nigam emphasized that the data publication is intended for the collective benefit of the industry. He actively encouraged other companies to adopt similar practices, believing that the data will empower businesses to make more informed decisions.

He explained that PhonePe built Pulse not simply because they could, but because they believe it is their responsibility to facilitate opportunities for innovation and growth within India.