India on Tuesday delayed the implementation of market share caps for a well-liked digital funds methodology by two years, a transfer that can profit Google Pay and Walmart-backed PhonePe.
In response to the proposal, first made in November 2020, digital fee companies wouldn’t be allowed to carry greater than 30 p.c share of the quantity of transactions processed by way of India’s fashionable unified funds interface (UPI).
The mandate, which was to take impact from the top of 2024, will now kick in on the finish of December 2026, in keeping 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 embrace fintech corporations corresponding to 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 keeping with regulatory knowledge. The 2 companies processed a mixed 13.1 billion transactions in November, the information confirmed.
“The choice to delay the market share cap is geared toward not hindering the expansion of the UPI ecosystem whereas additionally giving different gamers the time to develop,” an individual conversant in the discussions stated, 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 searching for remark.
The NPCI additionally lifted a cap on WhatsApp Pay’s UPI product onboarding customers, in keeping with a separate assertion on Tuesday.
© Thomson Reuters 2024
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)
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