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UPI apps may get time to adhere to 30% cap on market share

June 07, 2022

UPI apps may get time to adhere to 30% cap on market share
The National Payments Corporation of India (NPCI), which enables the country’s digital payment and settlement systems, may broaden the deadline for its contentious mandate requiring payment applications to hold something like 30% piece of the pie, individuals aware of the advancement told ET. The current deadline is January 2023.

“There is no choice but to consider this actively. They (NPCI) are wary of disturbing clients and in effect slowing down UPI growth,” said an individual aware of the discussions.

As indicated by sources, NPCI fears market interruption for consumers when third-party payment providers, for example, PhonePe and Google Pay actually hold around 47% and 34% portion of the overall industry, separately, as of April this year. “New entrants like WhatsApp Pay are yet to leave a critical mark in the market in terms of cornering market share,” said the individual aware of the current discussions.

An email sent to NPCI did not elicit any response on the matter till the time of going to press on Sunday. Top third-party UPI applications like PhonePe and Google Pay didn’t respond to ET’s queries on the matter.

NPCI’s mandate has seen concerted pushback from multiple UPI applications including the market leaders PhonePe and Google Pay. Two other major players Paytm and Amazon Pay are yet to break the dominance of the leaders.

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