Aid for PhonePe, Google Pay as NPCI extends UPI market cap deadline to Dec 31, 2024

Nationwide Funds Company of India (NPCI), which runs the UPI digital pipeline, has on Friday prolonged deadline for limiting quantity cap to 30% for TPAPs in UPI by two years until December 31, 2024.

TPAPs are third-party app suppliers. At current, there is no such thing as a quantity cap.

This could come as a aid for Unified Funds Interface (UPI) gamers like Google Pay and PhonePe, which account for a market share of about 80%.

NPCI, in November 2022, had proposed a 30% quantity cap for TPAPs in a bid to keep away from focus threat.

NPCI in 2020 got here up with a directive to cap the share of transactions a third-party software supplier (TPAP) might course of at 30% of the quantity of transactions dealt with on UPI, efficient January 1, 2021, which is to be calculated on the idea of the quantity of transactions processed throughout the previous three months.

Nevertheless, it gave the prevailing TPAPs, similar to PhonePe and Google Pay, which exceed the specified market cap, two further years, beginning subsequent 12 months to adjust to the directive.

Earlier this 12 months, the Reserve Financial institution of India (RBI) got here out with a session paper on fees in fee programs, which made a case for a tiered cost to be imposed on UPI transactions in step with Instant Fee Service (IMPS) transactions.

The federal government later issued a press release noting that UPI is a digital public good with immense comfort and productiveness positive aspects for the financial system, and there aren’t any plans to levy any fees for UPI companies.

ALSO READ: Google Play Retailer permits subscription-based UPI funds; examine methods to use it