With over 45 per cent market share, PhonePe's data is representative of the country's digital payment habits, the company said.
It is a QR code or SMS string-based e-voucher, which is delivered to the mobile of the beneficiaries, the statement said.
The pandemic and subsequent lockdown curbs fuelled uptake as both rural and urban customers sought banking solutions closer home, opting for convenient and secure digital payment options.
Digital payment channels in May, except UPI, saw a 30-40 per cent decline in value compared to March, while ATM cash withdrawals dropped by 64 per cent.
The report claimed India was ahead of China with 25.5 billion real-time payments transactions in 2020, compared to the northern neighbour's 15.7 billion.
The company also claimed high success rates for transactions, especially for RuPay cards and the Unified Payments Interface (UPI).
Digital payments major Paytm is ‘persuading’ its customers to provide Aadhaar as proof for Know Your Customer authentication, allege several customers of the app who spoke to Express.