According to reports, India intends to postpone the market share caps implementation phase, and thus, Google Pay and PhonePe will be fortunate once more. The National Payments Corporation of India (NPPI) will extend the deadlines by one and a half years for increasing the ceiling of companies’ shares based on payments made via UPI.
The move stirs top priority on growth at the last moment, stirring market monopolization. According to sources, PhonePe has a market share of 48% of UPI payments, arguably the highest. Usage of Google Pay has dropped significantly, from 37% in April 2020 to 4% in October 2020, while Google Pay’s market has become smaller and is only 37% of January 2021.
4% from 44%. A sum of 11 platforms jointly managed so much data that the numbers will still boggle some minds. We had 5 billion transactions in April. Introducing the decision to delay the market share caps, this fact is a key criterion as PhonePe and Google Pay need to lower their market shares without hindering their growth in the Unified Payment Interface (UPI) payments. NPCI, which has a regulating, has provided a 30% market share ceiling since 2020 and later indicated that the limit would be valid till 31st of December 2024.
Payment firms constantly spur NPCI to remove the market-share limit so that they can collect UPI payments according to price and welcome the competition in the market. In fact, the cap is apparently something that NPCI will not consider getting rid of. At the end of the day, the government will decide whether a single UPI platform will be used for payments against which customers will be charged.
