NPCI has ‘good news’ for Google, Walmart, and ‘bad news’ for Paytm, Amazon, WhatsApp and others – Times of India
National Payment Corporation of India (NPCI), specialised division of the Reserve Bank of India, has extended the deadline to comply with the 30 per cent market share cap for Unified Payment Interface (UPI) by two years to December 31, 2024.
The move comes as a sigh of relief for Walmart and Google, the companies operating two of the biggest UPI apps, PhonePe and Google Pay, in the country in terms of market share by transactions.
The guidelines, first introduced in November 2022, require each third-party UPI app to comply with the 30 per cent transaction cap by volume.
NPCI extends the UPI market cap deadline until 2025
“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs (third-party apps) who are exceeding the volume cap, is extended by two (2) years i.e. till December 31, 2024, to comply with the volume cap.,” the regulatory body said in a circular.
How Google and Walmart’s win is a loss for Paytm, Amazon, WhatsApp, and others
PhonePe and Google Pay have the most market share in the country, accounting for more than 80 per cent of the transactions in August, as per the recent report from NPCI. Individually, PhonePe constituted 49.25 per cent, while Google Pay had a 34.6 per cent share in August.
“In view of the significant potential of digital payments and the need for multi-fold penetration from its current state, it is imperative that other existing and new players (Banks and Non-Banks) shall scale up their consumer outreach for the growth of UPI and achieve overall market equilibrium.” reads the circular further.
If mandated to comply, the two companies would have received a major setback, but it would have benefited the likes of Paytm and Amazon, who had just a 13.2 per cent and 0.8 per cent stake, as it would have given the company a chance to grow its market share while limiting that of PhonePe and Google Pay.
The move comes as a sigh of relief for Walmart and Google, the companies operating two of the biggest UPI apps, PhonePe and Google Pay, in the country in terms of market share by transactions.
The guidelines, first introduced in November 2022, require each third-party UPI app to comply with the 30 per cent transaction cap by volume.
NPCI extends the UPI market cap deadline until 2025
“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs (third-party apps) who are exceeding the volume cap, is extended by two (2) years i.e. till December 31, 2024, to comply with the volume cap.,” the regulatory body said in a circular.
How Google and Walmart’s win is a loss for Paytm, Amazon, WhatsApp, and others
PhonePe and Google Pay have the most market share in the country, accounting for more than 80 per cent of the transactions in August, as per the recent report from NPCI. Individually, PhonePe constituted 49.25 per cent, while Google Pay had a 34.6 per cent share in August.
“In view of the significant potential of digital payments and the need for multi-fold penetration from its current state, it is imperative that other existing and new players (Banks and Non-Banks) shall scale up their consumer outreach for the growth of UPI and achieve overall market equilibrium.” reads the circular further.
If mandated to comply, the two companies would have received a major setback, but it would have benefited the likes of Paytm and Amazon, who had just a 13.2 per cent and 0.8 per cent stake, as it would have given the company a chance to grow its market share while limiting that of PhonePe and Google Pay.
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