UPI Transaction The government had brought a rule of maximum 30% market share to prevent the dominance of some big companies in the UPI market.
Unified Payments Interface (UPI): National Payments Corporation of India (NPCI) has approved PhonePe and Google Pay (Google Pay) like Unified Payment Interface (UPI) has given great relief to the apps. National Payment Corporation of India (NPCI) has extended the deadline for UPI apps to comply with the 30 per cent market share rule by two years to December 31, 2024. In fact, to prevent the dominance of some big companies in the UPI market, the government had brought a rule of maximum 30% market share. Under this, a company providing UPI service cannot have more than 30% market share. Google Pay and PhonePe have the largest share of UPI based transactions in the Indian market.
NPCI had given UPI apps time till 31 December 2022 to comply with this rule. However, now the time limit has been extended for two years. At present, about 96% of UPI transactions in the country are done through only three apps. These include PhonePe, Google Pay and Paytm. Out of this, about 80% of UPI transactions happen through only two apps – PhonePe and Google Pay.
NPCI said in a statement that keeping in view the current usage of UPI, its future growth potential and other aspects, we have extended the deadline for third-party payment apps (TAPA) to comply with the market volume cap by 2 years ie. Extended till 31 December 2024. As per the latest data related to UPI app, about 47% of UPI transactions in October were through PhonePe. At the same time, about 34 percent of UPI transactions were seen from Google Pay, while Paytm’s share was 15%.
Beneficial deal for Paytm
There are many other apps in the UPI market including Amazon Pay, WhatsApp Pay, but their market share is very less. Users have remained with these top-3 companies. The 30% market cap rule where PhonePe and Google Pay may take a hit. At the same time, it is considered a profitable deal for Paytm because after the implementation of this rule, Paytm’s UPI transaction volume is expected to see a huge jump.
UPI transactions are growing rapidly in the country
National Payments Corporation of India said in a circular that keeping in view the current usage and future prospects of UPI and other relevant factors, the compliance deadline for TPAPs having higher stake has been extended by 2 years i.e. till December 31, 2024 . Let us tell that the number of transactions done through UPI in India and its value is continuously increasing rapidly. The total number of UPI transactions in October 2022 increased by 7.7 percent to reach 730 crore, with a total value of Rs 12.11 lakh crore.
English News Headline : NPCI gives big relief to UPI apps like Phone Pay and Google Pay.