National Payment Corporation of India ,NPCIspecialised department of the Reserve Bank of Indiahas prolonged the cut-off date to agree to the 30 p.c marketplace proportion cap for Unified Payments Interface (upi) through two years to December 31, 2024.
The transfer comes as a sigh of reduction for Walmart and Google, the firms running two of the most important UPI apps, PhonePe and Google Paywithin the nation on the subject of marketplace proportion through transactions.
The pointers, first offered in November 2022, require every third-party UPI app to agree to the 30 consistent with cent transaction cap through quantity.
NPCI extends the UPI marketplace cap cut-off date until 2025
“Taking under consideration the prevailing utilization and long term attainable of UPI, and different related elements, the timelines for compliance of present TPAPs (third-party apps) who’re exceeding the quantity cap, is prolonged through two (2) years ie until December 31 , 2024, to agree to the quantity cap,” the regulatory body said in a circular.
How Google and Walmart’s win is a loss for Paytm, amazonWhatsApp, and others
PhonePe and Google Pay have the most market share in the country, accounting for more than 80 percent of the transactions in August, as per the recent report from NPCI. Individually, PhonePe constituted 49.25 per cent, while Google Pay had a 34.6 per cent share in August.
“In view of the significant potential of digital payments and the need for multi-fold penetration from its current state, it is imperative that other existing and new players (Banks and Non-Banks) shall scale up their consumer outreach for the growth of UPI and achieve overall market equilibrium.” reads the round additional.
If mandated to conform, the 2 corporations would have won a big setback, however it could have benefited the likes of Paytm and Amazon, who had only a 13.2 consistent with cent and nil.8 consistent with cent stake, as it could have given the corporate an opportunity to develop its marketplace proportion whilst restricting that of PhonePe and Google Pay.
The transfer comes as a sigh of reduction for Walmart and Google, the firms running two of the most important UPI apps, PhonePe and Google Paywithin the nation on the subject of marketplace proportion through transactions.
The pointers, first offered in November 2022, require every third-party UPI app to agree to the 30 consistent with cent transaction cap through quantity.
NPCI extends the UPI marketplace cap cut-off date until 2025
“Taking under consideration the prevailing utilization and long term attainable of UPI, and different related elements, the timelines for compliance of present TPAPs (third-party apps) who’re exceeding the quantity cap, is prolonged through two (2) years ie until December 31 , 2024, to agree to the quantity cap,” the regulatory body said in a circular.
How Google and Walmart’s win is a loss for Paytm, amazonWhatsApp, and others
PhonePe and Google Pay have the most market share in the country, accounting for more than 80 percent of the transactions in August, as per the recent report from NPCI. Individually, PhonePe constituted 49.25 per cent, while Google Pay had a 34.6 per cent share in August.
“In view of the significant potential of digital payments and the need for multi-fold penetration from its current state, it is imperative that other existing and new players (Banks and Non-Banks) shall scale up their consumer outreach for the growth of UPI and achieve overall market equilibrium.” reads the round additional.
If mandated to conform, the 2 corporations would have won a big setback, however it could have benefited the likes of Paytm and Amazon, who had only a 13.2 consistent with cent and nil.8 consistent with cent stake, as it could have given the corporate an opportunity to develop its marketplace proportion whilst restricting that of PhonePe and Google Pay.