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NPCI extends the deadline for market cap on UPI apps until 2026.

Banking & Finance | Dated: 04 Jan 2025

In December 2024, the National Payments Corporation of India (NPCI), headquartered in Mumbai, Maharashtra, declared a two-year extension for the implementation of a 30% market share cap for Unified Payments Interface (UPI) providers, pushing the deadline to December 31, 2026.

🎯 Key Highlights:

  • - This is the third time the NPCI has extended the deadline for enforcing the 30% market share cap for UPI providers.
  • - Initially proposed in November 2020, the NPCI set a two-year compliance period for the 30% market share cap. Due to opposition from the industry, the deadline was first moved to 2022 and later extended to December 31, 2024.
  • - As of November 2024, PhonePe (47.8%) and Google Pay (37.02%) lead UPI transactions, with Paytm, Navi, and Cred following.

💡 Other Important Facts:

  • (i) UPI transactions saw a 46% increase in 2024, reaching 172 billion, up from 118 billion in 2023.
  • (ii) NPCI removed the user cap for WhatsApp Pay in December 2024, allowing over 500 million users to use UPI services.
  • (iii) WhatsApp Pay will continue to follow UPI guidelines for Third-Party Application Providers (TPAPs).

📚 Test Your Knowledge:

Which organization recently announced the extension of the deadline for the 30% market share cap on UPI apps?

Correct Answer: NPCI

🚀 Quick Recap:

About NPCI

  • MD & CEO : Dilip Asbe
  • Headquarter : Mumbai