Fintech firm BharatPe has entered the consumer payments space by rebranding its postpe app as BharatPe. This strategic move places BharatPe in direct competition with established players like PhonePe, Google Pay, and Paytm in the peer-to-peer (P2P) payments ecosystem.

The revamped BharatPe app now allows users to create UPI IDs through the app, facilitating payments to both individuals and merchants. Additionally, users can pay various utility bills through the app. BharatPe has partnered with Unity Bank to enable third-party application provider (TPAP) services, further enhancing its payment capabilities.

One of the key features of the new app is UPI Lite, which allows customers to preload an online wallet and make transactions of up to Rs 500 across both P2P and peer-to-merchant (P2M) payments without requiring a UPI PIN. This feature aims to streamline smaller transactions and improve user convenience.

With a registered network of over 13 million merchants, BharatPe is already a significant player in UPI offline transactions, processing more than 370 million UPI transactions per month. The company’s expansion into consumer payments marks a significant step in its growth trajectory.

Currently, the UPI ecosystem is dominated by PhonePe, which holds more than 48% of the market share in overall transactions, including both P2P and P2M payments. Google Pay and Paytm follow with market shares of approximately 37% and 8%, respectively.

In addition to these market leaders, several new UPI apps have gained traction recently. CRED has emerged as the fourth-largest player, with other notable competitors including Axis Bank Apps, Amazon Pay, Navi, ICICI Bank Apps, Fampay by Trio, and Kotak Mahindra Bank Apps. WhatsApp Pay also made significant progress, securing the 11th position in July.

Among the new entrants, Sachin Bansal’s Navi app nearly doubled its transactions from 35 million in June to 68 million in July, showcasing the growing competition in the UPI space.

As BharatPe steps into the consumer payments arena, it will be intriguing to see how the company navigates the competitive landscape. Meanwhile, the National Payments Corporation of India’s (NPCI) decision to impose a 30% market share cap on third-party apps remains on hold, allowing the market to evolve without immediate regulatory constraints.