Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusiness

NPCI may cap market share of UPI entities: Report

Limiting the number of daily transactions by a customer can be a possible option, a media report said.

September 05, 2019 / 12:53 PM IST

The National Payments Corporation of India (NPCI) is considering placing a limit on the market share of unified payments interface (UPI) platforms, a report in The Economic Times says.

“We do not know yet how this will be done but have to figure out a way without causing customer inconvenience,” a source told the newspaper.

Moneycontrol could not independently verify the story.

Limiting the number of daily transactions by a customer was a possible option, the report said.

The proposal was discussed at a meeting of the UPI steering committee led by NPCI but nothing was finalised, it added.

“There was a proposal on limiting each company’s market share to not more than 33 percent of all UPI transactions, so that no one enjoys a monopoly over payments in the country,” a banker told the publication.

The rapid rate at which UPI was grown, driven by only three main players, Paytm, PhonePe and Google Pay, had made the regulator and NPCI to “become cautious of there being a concentration risk at some later point in time”, a source told ET.

In August, Flipkart recorded the highest number of UPI transactions at 342 million, Google Pay 320 million and Paytm was third with 150 million, the report said.

NPCI declined comment. Google, WhatsApp and Phone-Pe had not responded to requests for comment.

NPCI was also looking to ensure that payments were distributed equally among the several partner banks, the report said.

"There were also discussions around allowing each third party payment app to have maximum 10 banking partners to encourage diversification," a source told the paper.

Moneycontrol News
first published: Sep 5, 2019 12:53 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347