India has postponed the implementation of a cap limiting the market share of third-party app providers utilizing the country’s Unified Payments Interface (UPI).
The National Payments Corporation of India (NPCI) has delayed the rollout of a 30% market share cap from the end of 2024 to 2026, marking the second delay for this initiative. This decision favors Google Pay and PhonePe, which collectively account for over 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,” the NPCI stated.
Although PhonePe and Google Pay currently dominate the market, they may soon encounter renewed competition from WhatsApp, which has recently received approval to roll out its peer-to-peer payments service to all of its 500 million Indian users.