UPI Transactions: Google Pay and PhonePay have been gaining momentum in the UPI payment system for some time now. Due to RBI restrictions, Paytm is slightly behind.. Now the share of these two has reached 86 percent in the UPI market. Now NPCI is ready to check their monopoly. Will be meeting with other fintech startups soon.
NPCI: PhonePay, Google Pay Hawa continue to dominate the UPI payment system domestically. Even though Paytm was giving some competition until a few days ago.. Now it is behind the competition due to the restrictions of Reserve Bank of India (RBI). Thus, in terms of value in UPI transactions, the share of these two companies together has reached 86 percent. Concern is being expressed about their monopoly in this order. National Payments Corporation of India (NPCI) has entered the field recently. In order to check their supremacy, there will be a meeting with fintech startups soon.
RBI has recently expressed concern over monopoly in UPI transactions. A parliamentary panel has also raised this issue in the past. It is in this context that the representatives of NPCI will now meet with other fintech companies including Cred, Flipkart, Zomato, Amazon. However, Google Pay, Phone Pay and Paytm have not been invited to this meeting, according to the TechCrunch website. The meeting will mainly discuss the measures to be taken to increase UPI transactions on the respective platforms. It is said that it is already in contact with the representatives of many organizations.
It encourages giving incentives to users to help increase market share. RBI is also open to the plan to provide incentives to new UPI players with the intention of creating a favorable environment.
On the other hand, the deadline given to comply with the 30 percent size limit in digital payment transactions is going to end on December 31 this year. In November 2020, NPCI introduced a limit that one third-party app should not account for more than 30 percent of the total UPI transaction volume. The deadline for implementing that decision has been extended several times. This deadline will expire in a few months. It is in this order that NPCI is now ready for action. And the real question is whether this 30 percent limit is possible or not.
PhonePay has also signed several agreements for UPI payments in Nepal, United Arab Emirates and Singapore. Google Pay has also signed an agreement with NPCI to use UPI for international payments. On the other hand, the share of Paytm in this market is decreasing.
Read also: UPI Payment App: Government’s new plan on UPI Payment, these new apps are coming…
