Good news has come for fintech companies like PhonePe, Google Pay, and WhatsApp.
The National Payment Corporation of India (NPCI) has decided to extend the deadline for limiting the volume of transactions on UPI (Unified Payments Interface) by two more years.
This means that these companies can now process as many transactions as they want without any restrictions.
Key Changes and Impact on WhatsApp Pay
This decision allows PhonePe and Google Pay, the top two companies handling UPI transactions, to continue their business without worrying about transaction limits.
Moreover, NPCI has also removed the limit on adding new UPI users on WhatsApp Pay.
This change will take effect immediately, allowing WhatsApp Pay to offer UPI services to all its users in India.
Background on UPI Transaction Limits
Back in November 2020, NPCI had proposed a limit on the volume of UPI transactions for any company, capping it at 30%.
This move was meant to prevent any one company from dominating the market.
However, PhonePe and Google Pay argued that such a limit could hurt their growth and negatively impact the overall growth of UPI payments in India.
According to NPCI data, PhonePe and Google Pay together hold around 47.8% of the total UPI transactions in India.
Specifically, PhonePe holds around 48%, while Google Pay has about 37%. The Payment Council of India has welcomed NPCI’s latest decision.
WhatsApp Pay’s Growth Potential
Previously, NPCI allowed WhatsApp Pay to increase its user base gradually, with a cap of 100 million (10 crore) UPI users.
However, the new decision allows WhatsApp Pay to add as many users as it wants, as long as it follows the UPI guidelines and rules for third-party application providers.
