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Payment’s app divided on UPI market share cap
November 04, 2022
The Centre will not “actively intervene” in the matter of conflicting demands by India’s top payment providers over the issue of enforcing a 30% cap on the market share of. apps operating on the unified payment interface (UPI), top officials told ET. This follows contrasting demands on the issue by digital payment providers in recent weeks.
While Paytm, the third ranking payment app “believes market capping should be implemented as per the timeline (December 2022), “ market leaders Walmart-owned PhonePe as well as Google Pay had independently approached UPI regulator National Payments Corporation of India (NPCI) for an extension of the deadline by at least three more years.
Senior officials told ET that the mandate to decide on this issue lies with the NPCI and the Reserve Bank of India. However, the Centre will monitor any decision that could potentially affect consumers, they added.
“The Government of India cannot be taking sides. Ultimately, there has to be a balance between consumer good and that of the UPI ecosystem,” a senior IT ministry official told ET.
As per latest NPCI data for the month of September, PhonePe and Google Pay had market shares of 46.7% and 33.3%, respectively, in terms of volumes of UPI transactions handled.
NPCI continues to be in consultation with the government departments as well as the RBI before finalising its decision.
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