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India has once again pushed backa litigious planto trammel major engineering companies ’ control of the body politic ’s digital payment system , extend a regulative uncertainty that has count on the sector for years .
The National Payments Corporation of India said on Tuesday it would pass the deadline for implementing a 30 % capital on any single app ’s contribution of transactions on the Unified Payments Interface , or UPI , the country ’s ubiquitous digital defrayment connection , to December 31 , 2026 .
The decisiveness provides temporary relief to Walmart - endorse PhonePe and Google Pay , which together handle more than 85 % of dealings on UPI . The connection , which processes over 13 billion transactions monthly , has become the backbone of India ’s digital economic system since its launch eight years ago .
The governor , which work under the supervision of India ’s cardinal bank and is back by more than 50 retail banks , hasstruggled to incur way to implement the market share restrictionswithout disrupting serve for hundreds of jillion of Indians who rely on these payment apps daily .
On Tuesday , India alsolifted restrictions on WhatsApp ’s wandering payments service , let the Meta - owned instant message app roll out WhatsApp Pay to all its 500 million - plus users in the South Asian market .
Throughout this twelvemonth , officials heldextensive discussions with industry leadersabout ways to enforce the caps , but found no practicable root that would n’t adventure interrupt the consumer experience , according to the great unwashed familiar with the discussions .
to begin with this twelvemonth an Indian parliamentary panel urged the government tosupport the growth of domestic fintech playersthat can render option to PhonePe and Google Pay .
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The market share limits were first proposed in 2020 , with an initial deadline that was later pushed to 2025 . Tuesday ’s decision marks another time lag in India ’s efforts to check the growing mightiness of planetary technology giants in its flourishing digital thriftiness .
For PhonePe , which controls nearly one-half of India ’s digital payments grocery store , the extension supply crucial clearness as it weighs plans for an initial public offering . The company ’s top executive had antecedently cited the regulative doubtfulness around mart share caps as a key obstacle to their IPO timeline .
The UPI web , which facilitate interoperability among different defrayal apps and banks , has become the most popular way Indians transact online , used for everything from street marketer defrayment to hack fares .