India delays UPI market share cap deadline

India has postponed the roll out of a cap that would limit the market share of third party app providers using the country's Unified Payments Interface (UPI).

2 13 January 2025 1 comment

India delays UPI market share cap deadline

Editorial

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The National Payments Corporation of India (NPCI) has pushed back the rollout of a 30% market share cap from the end of 2024 by two years, the second such delay.

The move benefits Google Pay and Walmart-backed PhonePe, which between them cover more than 85% of UPI transactions.

"Considering various factors, the timeline for existing TPACs [third party app providers] who are exceeding the volume cap, is extended by two years," says the NPCI.

While PhonePe and Google Pay dominate the market, they are set to face some renewed competition from WhatsApp, which was recently given the greenlight to roll out its P2P payments service to all of its 500 million Indian users.

Comments: (1)

Jeremy Light Co-founder at Fourdotzero

13 January 2025

Curious to see how PhonePe with 48% share of UPI transactions and Google Pay with 37% are expected to reduce their share below 30%.

What do they do - limit the number of payments per customer? end the service to a proportion of customers? degrade their services so customers start migrating to others? transfer arbitrarily a proportion of their customers to another provider? start charging customers to drive them away?

Its difficult to see how any such measures benefit customers or competition or have anything to do with running with a business properly.

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