The National Payments Corporation of India (NPCI) on Tuesday deferred by two years the implementation of market share cap for UPI firms.
The move stands to come as a relief to major United Payment Interface firms such as Google Pay and Walmart -backed PhonePe.
According to a proposal first made in November 2020, digital payment firms were to be barred from holding more than 30 per cent of the total market share in the country.
The ruling, which was to be implemented by the end of 2024, will now take effect at the end of December 2026, NPCI said.
Besides Google Pay and PhonePe, some of the other players in the digital payment market are Paytm, Navi, Cred and Amazon Pay.
PhonePe's share of UPI payments stood at 47.8 per cent in November 2024 while Google Pay held 37 per cent, according to regulatory data.
The two firms between themselves processed 13.1 billion transactions in November, the data showed.
The decision, if it had come through this year, would have resulted in a huge chunk of the two firms' market share falling off.
The NPCI on Tuesday also lifted a cap on WhatsApp Pay's UPI product onboarding users.
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