PhonePe and Google Pay to Get Extra Time to Adhere to 30% UPI Market Cap: Report

Again in November 2020, the Nationwide Funds Company of India (NPCI) imposed a 30% cap

Again in November 2020, the Nationwide Funds Company of India (NPCI) imposed a 30% cap on transaction volumes for UPI apps. The system, which got here into impact in January 2021, supplied a two years transition interval in order that related stakeholders within the UPI ecosystem get the time to ease into the regulation. Whereas we’re nonetheless six months away from the proposed January 2023 timeframe, a brand new report highlights that the federal government is planning to increase the deadline.

NPCI Might Lengthen UPI Apps Deadline to Comply With 30% Cap

In line with an unique report from The Financial Instances, NPCI is mulling extending the deadline so as to keep away from a decline in UPI adoption. “There isn’t any selection however to contemplate this actively. They (NPCI) are cautious of disrupting customers and in impact slowing down UPI development,” sources instructed ET.

The event comes at a time when PhonePe and Google Pay proceed to dominate the UPI funds area by way of market share. As of April 2022, PhonePe holds 47% of the market share within the UPI ecosystem, adopted by Google Pay’s 34%. The subsequent closest participant is Paytm with 15% of the market share.

Whereas the main UPI apps proceed to develop, smaller gamers are discovering it arduous to draw an unlimited person base. For example, WhatsApp Pay, which bought the regulatory approval to have over 100 million customers, is experimenting with cashbacks to entice new customers. “New entrants like WhatsApp Pay are but to make a big dent out there by way of cornering market share,” ET’s supply added.

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