Walmart's PhonePe Hits $1.3 Trillion in Total Payment Value, Rivals Top US Fintech Players

Walmart, the global retail giant, announced that its digital payments arm, PhonePe, has achieved a remarkable Total Payment Value (TPV) of $1.3 trillion, placing it on par with major fintech players in the United States. During the Morgan Stanley Global Consumer and Retail Conference, Walmart’s Chief Financial Officer, John David Rainey, highlighted PhonePe’s potential, stating, “PhonePe could be one of the leading payment companies in the world, certainly outside of China in the near future.

Acquired by Walmart in 2018 through its purchase of Flipkart, PhonePe has become a significant player in India’s payment market, controlling half of the sector. The introduction of the Unified Payments Interface (UPI) in 2016 has played a pivotal role in PhonePe’s success, simplifying payments and transfers and fostering digital adoption in India.

In 2023, PhonePe raised $850 million in funding from investors, including General Atlantic, Ribbit Capital, and Tiger Global. Despite a 77% rise in revenue to Rs2,914 crore for PhonePe and a 9% growth in Flipkart’s revenue to Rs56,013 crore in FY23, Walmart is yet to finalize a timeframe for Flipkart’s public issue.

PhonePe, with a dominant 47.2% share of UPI transactions by volume and 50% by value, achieved a $1 trillion annualized TPV run rate in March. The company is diversifying its portfolio by investing in new ventures such as insurance and wealth management, making it a compelling prospect for potential investors. Walmart anticipates that both Flipkart and PhonePe, when they go public, could become highly attractive in terms of market capitalization.