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

Banking & Finance

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.


      - 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.

Main Point :-   (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).
About NPCI

MD & CEO : Dilip Asbe
Headquarter : Mumbai
          ____________________________