Yes Bank has established strong connections and is deeply integrated with PhonePe, leading it to the forefront of the UPI PSP rankings. Axis, on the other hand, collaborates with various UPI applications and serves as the primary partner for platforms like Google Pay, Amazon Pay, Flipkart UPI, Navi, and Cred, among others.

In the early years of UPI, from 2017 to 2020, the State Bank of India served as the main PSP partner for Google Pay, experiencing a higher failure rate than many smaller private sector banks.

Additionally, Google Pay attracted a significant number of new customers to Axis Bank while also transferring numerous accounts from SBI to Axis.

Paytm was compelled by regulatory measures to transfer all its PSP banking services from its affiliate, Paytm Payments Bank Limited, to Yes Bank, Axis Bank, HDFC Bank, and SBI.

The National Payments Corporation of India (NPCI) oversees the Unified Payments Interface (UPI), recognized as the most widely used real-time payment system in the country.

The recent improvement in Axis Bank’s standing can be attributed to three significant factors. Firstly, the bank has effectively enhanced its partnership with PhonePe, which is recognized as the leading UPI service provider in India.

Secondly, Google Pay, the second-largest UPI application in the nation, has experienced an increase in its UPI market share, rising to 37% after a decline in 2022. This development has indirectly benefited Axis Bank, which serves as its primary payment service provider.

Finally, regulatory measures have necessitated that Paytm transfer all its payment service provider banking functions from its subsidiary, Paytm Payments Bank Limited, to Yes Bank, Axis Bank, HDFC Bank, and SBI.