NPCI may review 30% UPI market share cap decision: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The National Payments Corporation of India (NPCI) is likely to review its decision to implement a 30% cap on the market share of payment players offering Unified Payments Interface (UPI) services by the end of 2024, according to Business Standard report.

As of now, the deadline to bring this change remains unchanged i.e., December 2024.

In November 2022, a 30% volume cap on third-party app providers was first proposed.

UPI players were requested to restrict their market share to 30% within two years.

In March, the NPCI discussed UPI growth with new players.

The NPCI discussed strategies to empower entrants in the UPI ecosystem, under which it wanted the third-party payment apps to engage users through investments and incentives.

Presently, industry giants PhonePe and Google Pay collectively command a significant 86% share of UPI transaction volumes, with PhonePe leading at 48.3% and Google Pay closely following at 37.6%.

However, Paytm Payments Bank, occupying the third-largest position in the UPI landscape, has experienced a decline in market share subsequent to regulatory constraints imposed by the Reserve Bank of India earlier this year.

Notably, other players such as Cred and Axis Bank Apps currently hold market shares of less than 1% each.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow