Thu Sep 19 06:54:29 UTC 2024: ## India’s UPI Payments Regulator May Relax Market Share Cap for Google Pay, PhonePe, and Paytm

**New Delhi, India** – The National Payments Corporation of India (NPCI), the governing body for India’s popular UPI payments system, is considering a major change to its proposed market share cap for leading players like Google Pay, PhonePe, and Paytm.

The regulator initially planned to enforce a 30% market share limit on UPI operators to promote competition. However, facing challenges in implementing this rule, NPCI is now considering raising the cap to over 40%. This move is expected to be controversial, as several UPI providers had hoped the regulator would intervene to curb the dominance of PhonePe and Google Pay.

PhonePe, backed by Walmart, currently commands a significant market share with roughly 48% by volume and 50% by value. Google Pay follows closely with a 37.3% share by volume. Paytm, once a major player, has seen its market share decline to 7.2%.

NPCI has previously struggled to find a feasible way to enforce the market share limits, originally scheduled for January 2021. The deadline was later extended to January 1, 2025.

The potential change has significant implications for PhonePe, India’s most valuable fintech startup with a $12 billion valuation. The company’s CEO, Sameer Nigam, has expressed concerns that regulatory uncertainty could hinder the company’s ability to go public.

This news comes as the Indian edtech sector faces a challenging funding environment, with one startup recently securing $210 million in fresh financing despite the downturn.

Read More