How the UPI based app like Google pay, Phonepe makes money

If we talk about the UPI based app. They are easy to use, fast, and direct payment methods from banks to banks through an encrypted network called "Unified Payment Interface". This network doesn't leak your bank information like IFSC code or bank account number or the name on the bank account. As this method introduced it's doesn't make that much popularity because competitors like Paytm, Phonepe already in the market with their wallet thing.
That wallet thing makes the payments much faster and the consumers preferred that rather than UPI. but time goes and they know what is the need for UPI because if you want to make a transaction then you have to make a transaction that will add money to that wallet and then you can send it to another one. And sometimes some wallets take charges to withdraw money from their wallet to their bank account like 1-2% depending on the terms and conditions.

What is the effect of UPI?

After the UPI this all changes this is a direct method which we are using right now to make a transaction without any charge. So there is a question asked much time how the company earns money because everybody knows that if you want to run a business you have to make a profit. If you just make a product and give them free then how you/they became a billionaire. And there is no donation kind of thing there 😅😂. In this blog, you will see how the UPI base app makes its money.

How UPI base app grow their numbers of Customers?

As you can see in front of you the best competitor in UPI-based apps is Google pay right now. Because Google is a very big company, they have very good Engineers, the quality of their product is very good, you can see the UI is very beautiful and simplified. Just swipe up or swipe down to make a payment or receive a payment through an audio conversation between two devices isn't it amazing!. After this kind of feature that's why Google pay is the biggest competitor in the UPI payment base app, as we can see the phone pay is also in between there, and also Paytm Amazon pay and also there a lot of services they are providing. Because of the services the fan base is growing. Also this kind of apps providing their own offers like first-time payment coupons, cashback, movie vouchers, and much more.

How the UPI base app make its profit?

As I said before the apps providing many offers to attract the customers to do payments through their apps. And I also told that the UPI is a very simple and free method to do a transaction, so again the question comes how they make there 💰?
The explanation is in the app as you can see they are offering rather than UPI, many other services like booking a movie ticket, making prepaid recharges, etc,. This service is not actually done by their own apps, they are handling other services using their own app UI. If you know how API works then you can understand. The original service is provided by the third party ( except UPI ) and these UPI apps taking their commissions, and that's how this is going on.