Google Pay, PhonePe, Paytm, and Other UPI Payment Apps May Impose Transaction Limit


UPI payment apps like Google Pay, PhonePe, and Paytm may soon impose limits on transactions.

National Payments Corporation of India (NPCI), which runs the UPI digital pipeline, is in talks with the Reserve Bank on implementation of its proposed December 31 deadline for limiting the volume cap of players to 30 percent.

There is no cap on volume and Google Pay and PhonePe hold a market share of about 80 percent.

NPCI  had proposed a 30 percent volume cap for third-party app providers (TPAP) in a bid to avoid concentration risk in November 2022.

A meeting has already taken place to comprehensively look at all aspects. Besides NPCI officials, senior officials of the finance ministry and RBI also participated in this meeting.

No final decision has been taken to extend the December 31 deadline as the NPCI is still evaluating all the possibilities. By the month’s end, NPCI is likely to decide upon the issue of UPI market cap implementation.

While Paytm, the third-ranking payment app wants market capping to be implemented as per the timeline (December 2022), market leaders Walmart-owned PhonePe, as well as Google Pay, had independently approached UPI regulator National Payments Corporation of India (NPCI) for the extension of the deadline by at least three more years.

The Central Government had recently said that UPI is convenient and that there were no plans to put any charges on it.

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