NPCI extended the deadline to set market share caps on Unified Payments Interface (UPI) applications by two years. This limit is no longer applicable until December 2026. This ruling has provided comfort to major UPI services such as PhonePe and Google Pay, which lead the Indian UPI ecosystem.
What is market share capitalisation?
The market share cap was proposed in 2020 with the goal of against any UPI payment app from exceeding 30% market share. It was designed to encourage competition and prevent monopolies. PhonePe now has a 47.8% market share, whereas Google Pay has 37%. Implementing the cap at this time may have jeopardised the services of these companies, which serve millions of users.
NPCI purpose of extending the deadline
The NPCI extended the deadline in order to balance market competition and innovation. This will allow budding finance platforms more time to build their businesses.
New potential for WhatsApp Pay
The NPCI has also eliminated WhatsApp Pay’s 100 million user limit, allowing the Meta-owned company to compete more effectively in India’s digital payments market.
Table of Contents
UPI’s increasing popularity
UPI is expected to rise by 46% in 2024, with 172 billion transactions, up from 118 billion in 2023. This increase highlights the essential role that UPI plays in India’s digital economy, as well as the necessity for balanced regulatory improvements.
Future potential
With the extended deadline, prominent applications like PhonePe and Google Pay will have more time to alter their business models and diversify services. This expansion may also foster collaboration among established and new firms, resulting in better services for consumers.
you join our tazatimesnews Telegram Channel
you join our whatsapp channel
Next News Read – New features and specs of the Tata Harrier EV were revealed when it was spotted testing on a track
