NPCI To Cap Transaction Volumes For UPI Apps At 30% From Jan 1
In a move that is likely to impact PhonePe and Google Pay which have market share higher than 30%, the National Payment Corporation of India (NPCI), which manages Unified Payment Interface (UPI), has decided to cap the share of the total number of transactions that a third party application can process at 30% of the total volume of transactions processed in UPI.
The decision will come into effect from January 1, 2021.
NPCI has said, the cap of 30% will be calculated basis the total volume of transactions processed in UPI during the preceding three months (on a rolling basis). And, the existing TPAPs, which have exceeded the cap, will have a period of two years from January 2021, to comply with the same in a phased manner.