The regulation would have affected gamers like PhonePe and Google Pay, which share a giant chunk of the UPI market. NPCI had earlier stated it is going to implement the rule by January 1, 2023.
This was a contentious mandate by the NPCI requiring cost apps to carry not more than 30% market share on the UPI community.
“Bearing in mind the current utilization and future potential of UPI, and different related components, the timelines for compliance of current TPAPs (third-party apps) who’re exceeding the quantity cap, is prolonged by two (2) years i.e. until December 31, 2024 to adjust to the quantity cap.,” NPCI stated in a round.
“In view of great potential of digital funds and the necessity for multi-fold penetration from its present state, it’s crucial that different current and new gamers (Banks and Non-Banks) shall scale-up their shopper outreach for the expansion of UPI and obtain total market equilibrium.”
ET first reported in its June 6 edition saying third-party UPI apps have been more likely to get extra time for compliance.
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ET has been masking the much-debated subject of UPI market share the place Google Pay and PhonePe dominate greater than 80% of the market share whereas Paytm, Amazon Pay and WhatsApp Pay are different gamers on the community.
As per the newest NPCI knowledge for the month of September, PhonePe and Google Pay had market shares of 46.7% and 33.3%, respectively, when it comes to volumes of UPI transactions dealt with.
