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India is face a quandary in enforcing long - delay convention to cut back the dominance of PhonePe and Google Pay in the country ’s ubiquitous UPI payments internet , which processes over 10 billion transactions monthly .
The National Payments Corporation of India ( NPCI ) , a special unit of the Indian cardinal camber , wants to limit the securities industry share of case-by-case companies in the democratic Unified Payments Interface ( UPI ) system of rules to 30 % , a long - delayed effort to stamp down the dominance of Walmart - indorse PhonePe and Alphabet ’s Google Pay , which together control over 83 % of the maturate payments market . However , with rival Paytm nowstruggling after rigorous regulatory action , the NPCI face an knifelike challenge in bringing down the command share of the extend duopoly : It does n’t sleep with how to .
The NPCI officials think there is a proficient roadblock to achieving the goal and have sought manufacture actor in late quarters for ideas , two informant conversant with the office said . The NPCI , whichdelayed enforcing the ruler to 2024 , correct to comment Tuesday .
Its dilemma has come into focus again after a parliamentary venire asked New Delhi last week to support domestic fintech firms tocounter the dominance of PhonePe and Google Pay . The recommendation hail after the central bank place Paytm to stop several operation at Paytm Payments Bank , the associate entity that processes dealings for the financial services radical .
India ’s real - time digital payments system , UPI , has radically transform the country ’s payment landscape since its launching in 2016 . The UPI net feature about 500 bank building , 70 million merchants and a monthly transaction book surpass 10 billion .
The NPCI originallyproposed(PDF ) a stoppage on the mart share to palliate risks on the organization and to “ smoothen out all the proceedings in the UPI ecosystem . ” At the time of the proposal , PhonePe and Google Pay commanded under 80 % of the UPI market .
securities firm house Macquarie on Tuesdaydramatically cut its 12 - calendar month price target on Paytmover concerns that its lending partners and its customers may provide the political program . Macquarie , whose price objective inculpate a valuation of $ 2.1 billion for Paytm ( accept into account that Paytm has a $ 1 billion in cash equaliser ) , said the Noida - headquartered firm is “ fight for its survival . ”
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Paytm ’s further loss of market share would benefit the top two , manufacture executive director caution . Citing official data , the parliamentary panel say PhonePe had 47 % and Google Pay 36 % securities industry share during October through November 2023 .
Industry executives say the only way for PhonePe and Google Pay to follow with the 30 % jacket is to stop adding raw users . In the meanwhile , PhonePe continues to spend on merchandising to take more portion .
India ’s primal money box , in the lag , is begin to suggest that perhaps a few thespian commanding the UPI marketplace plowshare is n’t really a trouble . The RBI Deputy Governor Rabi Shankar said at a press conference last week that the primal bank building has no care about UPI apps becoming too big , and how great someone becomes is for the “ securities industry to settle . ”
“ The market forces have to play out such that this percent is more evenly divide . We will not be interfere in the securities industry cognitive process to ensure the 30 % detonator that in any case is an NPCI essential . ”
