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NPCI has ‘excellent news’ for Google, Walmart, and ‘unhealthy information’ for Paytm, Amazon, WhatsApp and others

Nationwide Cost Company of India (NPCI), specialised division of the Reserve Financial institution of India, has prolonged the deadline to adjust to the 30 per cent market share cap for Unified Cost Interface (UPI) by two years to December 31, 2024.
The transfer comes as a sigh of aid for Walmart and Google, the businesses working two of the largest UPI apps, PhonePe and Google Pay, within the nation by way of market share by transactions.
The rules, first launched in November 2022, require every third-party UPI app to adjust to the 30 per cent transaction cap by quantity.
NPCI extends the UPI market cap deadline till 2025
“Considering the current utilization and future potential of UPI, and different related elements, the timelines for compliance of present TPAPs (third-party apps) who’re exceeding the quantity cap, is prolonged by two (2) years i.e. until December 31, 2024, to adjust to the quantity cap.,” the regulatory physique mentioned in a round.
How Google and Walmart’s win is a loss for Paytm, Amazon, WhatsApp, and others
PhonePe and Google Pay have probably the most market share within the nation, accounting for greater than 80 per cent of the transactions in August, as per the current report from NPCI. Individually, PhonePe constituted 49.25 per cent, whereas Google Pay had a 34.6 per cent share in August.
“In view of the numerous potential of digital funds and the necessity for multi-fold penetration from its present state, it’s crucial that different present and new gamers (Banks and Non-Banks) shall scale up their client outreach for the expansion of UPI and obtain general market equilibrium.” reads the round additional.
If mandated to conform, the 2 firms would have obtained a serious setback, however it might have benefited the likes of Paytm and Amazon, who had only a 13.2 per cent and 0.8 per cent stake, as it might have given the corporate an opportunity to develop its market share whereas limiting that of PhonePe and Google Pay.

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