GOOD NEWS for Google, PhonePe and WhatsApp users in India; NPCI delays UPI market cap
The National Payments Corporation of India (NPCI) has announced good news for online payment apps. The plan to restrict the market cap for UPI transaction apps like Google Pay and PhonePe to 30% has been postponed again.
NPCI announcement
NPCI has postponed market cap restrictions for UPI payment apps like Google Pay and PhonePe. The market cap restriction, initially planned for December 31, 2024, has been extended to December 31, 2026. This is the second extension by NPCI.
Impact on UPI Usage
The decision follows discussions with stakeholders. NPCI believes implementing the cap now could hinder UPI adoption. UPI transactions are projected to grow tenfold by 2025, according to a senior official.
PhonePe and Google Pay Dominance
The delay benefits PhonePe and Google Pay, which dominate the UPI market with about 90% of transactions.
WhatsApp Pay User Restrictions Lifted
NPCI has removed all user restrictions on WhatsApp Pay, allowing over 500 million users access to UPI.
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