Wed Jan 01 03:04:42 UTC 2025: ## India Delays UPI Market Share Caps by Two Years

**Mumbai, January 1, 2025** – India has postponed the implementation of market share caps for the Unified Payments Interface (UPI) by two years, pushing the deadline from the end of 2024 to December 2026. This decision, announced by the National Payments Corporation of India (NPCI), will benefit dominant players Google Pay and PhonePe, which currently hold a combined market share of over 80%.

The original proposal, dating back to November 2020, aimed to prevent any single UPI payment app from exceeding a 30% transaction volume share. However, citing a need to foster the growth of the UPI ecosystem and allow smaller players to catch up, the NPCI has opted for a delay. In November 2024, PhonePe controlled 47.8% of the market, while Google Pay held 37%, together processing 13.1 billion transactions.

A source familiar with the matter, speaking anonymously, stated that the delay is intended to avoid hindering the overall expansion of the UPI system. The NPCI also lifted user onboarding restrictions on WhatsApp Pay’s UPI service. The NPCI did not immediately respond to requests for comment.

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