The National Payments Corporation of India (NPCI) has provided relief to companies like PhonePe and Google Pay, which operate UPI apps. NPCI has extended the deadline for implementing the 30% market share cap on third-party Unified Payment Interface (UPI) apps by two years, until December 31, 2026. This is the third time NPCI has extended this deadline.
In a circular issued in recent times, the National Payments Corporation of India (NPCI) announced an extension of two years for third-party Unified Payment Interface (UPI) applications to comply with the 30% market share limit. The new deadline is set for December 2026. This decision comes after considering various factors, including the market shares of the current leading UPI app providers.
Why the Deadline Was Extended
NPCI had initially set a 30% cap on the volume of transactions processed by UPI apps in November 2020. The original deadline allowed existing apps two years to meet the volume limit. Currently, major third-party UPI apps like Google Pay and PhonePe control over 80% of the UPI transaction market.
What the 30% Market Share Limit Means
To maintain the 30% market share, UPI apps exceeding this limit will need to stop adding new customers. The market share will be calculated based on the total volume of UPI transactions over the past three months.
RBI introduces Beneficiary Name Look-Up for RTGS & NEFT!
From 1st April 2025, banks must enable remitters to verify beneficiary account names before initiating transactions, similar to UPI/IMPS.
A big step for enhancing accuracy and reducing fraud!#RBI pic.twitter.com/TQdJh4q3Js
— Ajay Gupta (@ajayguptaca) December 30, 2024
WhatsApp Pay Gets a Break
In a separate development, NPCI has removed the 10-crore user cap for WhatsApp Pay, which can now expand its UPI services to all of its users in India. Previously, WhatsApp Pay was allowed to grow its UPI user base in stages.
About NPCI and UPI
The National Payments Corporation of India (NPCI), an initiative by the Reserve Bank of India (RBI) and the Indian Banks’ Association, oversees the Unified Payments Interface (UPI). UPI is used for real-time transactions, both for payments to merchants and peer-to-peer transfers.