Players including PhonePe and Google Pay submitted formal requests to postpone the deadline earlier
The National Payments Corporation of India (NPCI) has extended the deadline for the Unified Payments Interface (UPI) players to stick to a market cap of 30 per cent by nearly two years to December 2024.
NPCI earlier fixed a deadline of January 1, 2023.
“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs (third-party apps) who are exceeding the volume cap, is extended by two years i.e. till December 31, 2024, to comply with the volume cap,” NPCI told in a statement.
"Significant potential of digital payments and the need for multi-fold penetration from its current state other existing and new players (banks and non-banks) must scale-up their consumer outreach for the growth of UPI and achieve overall market equilibrium," it further added.
The news came as a sigh of relief to the UPI giants such as Walmart-backed PhonePe and Google Pay, who submitted formal requests to NPCI to postpone the deadline.
An app-wise data by the NPCI pointed out that PhonePe had a 47 per cent market share in October 2022, Google Pay had 34 per cent and Paytm accounted for 15 per cent of the total volume. These three players jointly held nearly 96 per cent market share in India. Hence new players such as Whatsapp Pay and Amazon Pay are struggling in terms of customer acquisition.
The implementation of the guidelines related to market share can cause a setback for the players like PhonePe and Google Pay. However, it can help Paytm with a larger market share.
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