comscore Google Pay, PhonePe & other UPI apps to face 30% cap on transactions
News

Google Pay, PhonePe and other third-party UPI apps to face 30 percent caps on all transactions

The NPCI has announced a 30 percent cap on all third-party UPI payment apps. Google Pay and PhonePe themselves account for 40 percent of the market share.

  • Published: November 6, 2020 2:28 PM IST
google pay stock image Google Pay scratch cards

Representative Image


If you use UPI payment apps like Google Pay, PhonePe, Paytm, or any third-party UPI payment app, this news will concern you. The National Payments Corporation of India (NPCI) has introduced a 30 percent cap on all payments made via UPI apps. Basically, the NPCI has put a limit on all the transactions processed via a single company, in order to “address the risks and protect the UPI ecosystem as it further scales up.” Also Read - WhatsApp Pay now available for 400 million Indian users: Check details

The new rule will be applicable from January 2021. Those services that have a share of more than 30 percent of the transaction volumes will be allowed a period of two years to comply with the rules. The new law comes just a day before WhatsApp is allowed to carry on transactions via WhatsApp Pay on its platform. The law is applicable to all third-party applications processing UPI payments, including bank apps too. Also Read - Google ने Android यूजर्स को किया आगाह, जल्द कर लगें अपने Chrome को अपडेट

30 percent cap on all UPI payments

The new law makes it tough for popular UPI payment apps such as Google Pay and PhonePe. Both these services each account for 40 percent of the total market share. This means that both Google Pay and PhonePe have to look for ways to reduce the number of transactions made on their platform in order to comply with the law. Also Read - YouTube generates $5billion in ad revenue for Google in Q3

phonepe app, Yes Bank Impact

This gives a very good chance for other apps to improve their business, given that users of Google Pay and PhonePe will now have to look for other services in order to make the payments. Ever since its introduction, more consumers in India have started using the UPI method of payments.

Paytm and Mobikwik have shares of 20 percent combines, which gives them an opportunity to increase their share. Meeting the 30 percent cap alone for these services will see massive growth in the transactions processed by them. This could also translate to more business for BHIM and other bank apps that barey hold any share in the current scenario.

What does it mean for customers?

If you rely on Google Pay or PhonePe mostly for your UPI-based transactions, you will frequently see transaction failures. However, you will have a better chance fo making the payment via other unpopular services such as BHIM and bank apps.

 

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: November 6, 2020 2:28 PM IST



new arrivals in india

Micromax In 1b
Micromax In 1b

6,999

Micromax In Note 1
Micromax In Note 1

10,999

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

14,999

Oppo F17
Oppo F17

17,990

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers