The National Payments Corporation of India (NPCI) set a 30 percent limit on transaction volumes for UPI apps in November 2020. The system, which went into effect in January 2021, had a two-year transition period to allow essential parties in the UPI ecosystem to adjust to the new rules. While the anticipated January 2023 date is still six months away, a fresh report indicates that the administration intends to extend the deadline.
NPCI May Extend UPI Apps Deadline to Comply With 30% Cap
According to an exclusive story from The Economic Times, the National Payments Corporation of India (NPCI) is considering extending the deadline in order to avert a drop in UPI use. “We don’t have an option but to think about it. “They (NPCI) are concerned about upsetting consumers and, as a result, halting UPI development,” ET sources said.
The news comes at a time when PhonePe and Google Pay continue to hold the majority of the UPI payments industry. PhonePe has a 47 percent market share in the UPI ecosystem as of April 2022, followed by Google Pay with 34 percent. Paytm is the second-closest competitor, with 15% of the market.
While the most popular UPI applications continue to gain in popularity, smaller companies are having difficulty attracting a large user base. For example, WhatsApp Pay, which has over 100 million users and has received regulatory permission, is experimenting with cashbacks to encourage new customers. “Newcomers like WhatsApp Pay have yet to make a meaningful dent in terms of capturing market share,” ET’s source noted.
Check out our list of the best UPI applications in India if you want to delve beyond the top UPI apps and explore your alternatives. Tell us about your favorite UPI app in the comments while you’re at it.