According to sources, PhonePe, a company owned by Walmart, has experienced a significant increase in its user base in recent days due to the ongoing crisis at rival company Paytm. Consumers are concerned about the fate of Paytm Payment Bank-issued UPI accounts, which has led to a surge in PhonePe's user numbers. Additionally, the company is also seeing faster growth on the merchant side. As the February 29 deadline set by the Reserve Bank of India for Paytm Payments Bank to halt its services approaches, PhonePe expects user growth through app installs and transactions to further increase. The company has already begun preparing its systems on the backend to handle the additional capacity.

The lack of clarity surrounding Paytm's business has contributed to the expectation of continued growth in user additions and transaction volumes. PhonePe is planning campaigns to attract more customers and merchants. As of now, PhonePe has not responded to queries regarding this matter. Paytm, based in Noida, has emerged as the primary beneficiary of the ongoing crisis. To capitalize on this opportunity, Paytm has initiated a campaign to attract new users and merchants. As of December 31, Paytm had approximately 39.3 million merchants on its platform. These merchants facilitated a total of 11.85 billion transactions valued at Rs 999 crore between October and December.