UPI share to be capped at 30 percent: NPCI to review its decision by year-end, says report

As of now, the deadline to bring this alteration remains unchanged i.e., December 2024.

“There is inactive clip for it. The 30 per cent headdress connected the transaction measurement of payments players offering UPI services volition beryllium reviewed by the extremity of this year," said a person, who requested helium not beryllium named. 

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In March, the NPCI met with caller UPI players and discussed however UPI could grow. In November 2022, National Payments Corporation of India had projected a 30 per cent measurement headdress connected 3rd enactment exertion providers. It asked UPI players to bounds their marketplace stock to 30 per cent successful 2 years.

Dominance of duo 

Two entities PhonePe and Google Pay, person astir 86 per cent of the UPI marketplace stock successful presumption of transaction volumes, NPCI information shows. These 2 clasp 48.3 per cent and 37.6 per cent share, respectively.

Paytm Payments Bank, which is the distant third, is mode down and significantly, its marketplace stock fell aft the Reserve Bank of India (RBI) imposed restrictions connected it successful January this year. The adjacent two, Cred and Axis Bank Apps, person little than 1 per cent each of marketplace share. 

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Paytm processed 1.23 cardinal transactions successful March, down from 1.57 cardinal successful January 2024. The steadfast had a 9 per cent marketplace stock successful UPI arsenic of March this year.

UPI fees

Fintech firms are not investing successful the UPI ecosystem simply due to the fact that transactions are escaped and bash not levy a merchant discount codification (MDR). Large fintech firms invested and recovered UPI to beryllium a instrumentality to get caller customers.

“UPI has the quality to turn multifold. However, zero MDR is restricting newer players to travel successful oregon for them to put (in the ecosystem). Once that is done, the marketplace should equilibrium itself connected its own," 1 idiosyncratic was quoted arsenic saying successful the above-mentioned BS article.

ALSO READ: Is Paytm Payments Bank saga casting a shadiness connected India’s UPI occurrence story? 3 experts measurement in

A treatment connected introducing MDR connected UPI transactions tin beryllium done aft the wide elections. 

Last year, NPCI introduced an interchange interest connected prepaid outgo instrumentality (PPI)-based merchant transactions done UPI. 

FY24 was the archetypal clip that UPI transactions crossed 100 cardinal to adjacent astatine 131 cardinal successful a fiscal year. There were 84 cardinal transactions successful FY23. In March 2024, transaction measurement grew 55 per cent to 13.44 billion. Value was up 40 per cent to ~19.

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Published: 20 Apr 2024, 02:57 PM IST