While smaller competitors started to pick up the pace, a bit of reduction in the proportion of total transactions across India’s unified payments interface was observed in PhonePe and Google Pay in June.

For PhonePe the UPI transactions went down by 48.67 percent in May from 48.37 percent.

An analysis by the National Payments Corporation of India indicated that Google Pay's share reduced to 36.76 percent from 37.18 percent the previous month.

In June, the transactions were processed at 13.88 billion across the UPI network, a one percent decrease from the previous month.

Run by the government-backed NPCI, the UPI serves as a link between banks and fintech companies like Paytm, PhonePe, and Google Pay to enable users to send money instantly.

Recent days saw an inflow of new players in the UPI payments segment.

The new players are upending PhonePe and Google Pay's hegemony, which holds over 80 percent of the market.

For example, UPI transactions on the apps of Axis Bank Ltd. increased by 17 percent to 75 million in June, while UPI transactions on the Navi app increased by 20 percent to 35.7 million.

Moreover, super.money, a distinct UPI payment service, was introduced by PhonePe's another wing, Flipkart, the massive Indian e-commerce company.

With its JioFinance app, Mukesh Ambani's Jio Financial Services has entered the race in an attempt to capitalize on India's developing finance scene.

Paytm, which suffered a regulatory setback, held onto its eight percent market share from the previous month, indicating that the decline from 13 percent at the beginning of the year has stopped.

Following the Reserve Bank of India's order earlier this year to virtually shut down its banking unit, Paytm's net loss for the first quarter of its fiscal year ended in June more than doubled to 8.39 billion rupees ($100 million).