India on Tuesday delayed the implementation of market share caps for a well-liked digital funds methodology by two years, a transfer that may profit Google Pay and Walmart-backed PhonePe.
In keeping with the proposal, first made in November 2020, digital cost corporations wouldn’t be allowed to carry greater than 30 p.c share of the amount of transactions processed by way of India’s well-liked unified funds interface (UPI).
The mandate, which was to take impact from the tip of 2024, will now kick in on the finish of December 2026, in accordance with a press release from the Nationwide Funds Company of India (NPCI), a quasi-regulator.
Google Pay and Walmart-backed PhonePe are the 2 most generally used apps in India to make UPI funds. Different gamers embody fintech firms reminiscent of Paytm, Navi, Cred and Amazon Pay.
PhonePe’s share of UPI funds stood at 47.8 p.c in November 2024 whereas Google Pay’s share was at 37 p.c, in accordance with regulatory knowledge. The 2 corporations processed a mixed 13.1 billion transactions in November, the info confirmed.
“The choice to delay the market share cap is aimed toward not hindering the expansion of the UPI ecosystem whereas additionally giving different gamers the time to develop,” an individual conversant in the discussions mentioned, talking on the situation of anonymity as they don’t seem to be allowed to talk to the media.
The NPCI didn’t instantly reply to an electronic mail looking for remark.
The NPCI additionally lifted a cap on WhatsApp Pay’s UPI product onboarding customers, in accordance with a separate assertion on Tuesday.
© Thomson Reuters 2024
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