Fintech Brief — May 02, 2026

Today’s Top Stories

1. UPI Transactions Slip to 22.35 Bn in April

UPI transaction volume declined 1.3% month-on-month to 22.35 billion transactions in April 2026, down from 22.64 billion in March. The total transaction value stood at ₹29.03 lakh crore, according to NPCI data. Despite the sequential dip, YoY growth remains strong at 25% from 17.89 billion transactions in April 2025, with value growing 21% from ₹23.95 lakh crore.

Average daily transaction count rose 2.1% MoM to 745 million, while average daily value increased 1.6% to ₹96,766 crore. PhonePe continued to lead the market, crossing the 1,000 crore transaction volume mark in March with transactions worth ₹14.48 lakh crore. Google Pay’s market share declined slightly to 33.5% from 34% in February, while Paytm held 7.9%.

Market cap concerns: NPCI officials met with smaller UPI players this week to discuss the long-pending 30% market share cap for third-party app providers. Originally proposed in 2020, the deadline has been extended multiple times and is now set for December 31, 2026. Discussions focused on preferential incentives, early access to new features, and reviewing autopay-related restrictions to boost competition.

2. Fino Payments Bank in Crisis Mode

Fino Payments Bank is navigating multiple challenges as it seeks to transition into a Small Finance Bank. The payments bank reported a 43% YoY decline in net profit to ₹52.5 crore for FY26, with Q4 profit plummeting 70% to ₹7.1 crore from ₹24 crore in the same quarter last year.

Three key factors contributed to the decline:

  • Domestic money transfer business collapse: RBI’s November 2024 circular effectively ended a significant portion of bank-led remittance transactions, impacting Fino heavily given its exposure to this segment.

  • NBFC & MFI stress: Fino’s Cash Management Services (CMS) and business correspondent banking segments—contributing 15% of FY25 revenue—heavily relied on NBFC and microfinance institution activity (59% of CMS throughput in FY25). As lending slowed, NBFC & MFI share of CMS throughput dropped to 46% in Q4 FY26, causing CMS revenue to decline 26% YoY.

  • Digital payments pullback: Following the government’s ban on real-money gaming in August 2025 and subsequent regulatory scrutiny, Fino shut its UPI PQM (payments and QR merchant) business. CEO Rishi Gupta was arrested in connection with alleged GST evasion by programme managers.

Fino received in-principle RBI approval in December 2025 to convert into a Small Finance Bank, which would allow it to lend money. The bank targets 90% secured loans and a 20% ROE by FY30, leveraging its low-cost CASA deposit base (cost of funds under 2%) for a competitive advantage in lending.

3. NPCI Meets Smaller UPI Players on Market Concentration

NPCI held discussions this week with smaller UPI ecosystem players to address market concentration concerns. The meeting focused on:

  • Preferential incentives for smaller players
  • Early access to new UPI features
  • Review of autopay-related restrictions
  • Implementation timeline for the 30% market share cap on third-party app providers

The cap, originally proposed in 2020, has been postponed multiple times. The current deadline is December 31, 2026. Industry watchers expect some movement on enabling smaller players to compete more effectively against dominant players PhonePe and Google Pay.

4. Versana Raises $43M for Loan Data Platform

New York-based Versana secured $43 million in funding to expand its digital database and clearinghouse for the corporate syndicated loan market. BNP Paribas led the round, with participation from Apollo, Motive Partners, MassMutual Ventures, and Fitch Ventures. Total funding now exceeds $125 million.

Versana provides a real-time platform centralizing agent-bank loan data for syndicated loans and private credit, enabling portfolio reconciliation, monitoring of corporate actions, and integration into internal systems. The funding will support expansion into Europe, private credit, and data analytics.

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