The National Payments Corporation of India (NPCI) has issued app-wise data for businesses and banks offering Unified Payment Interface (UPI). According to the data, Google Pay accounted for nearly 45% of UPI’s transaction volume, and PhonePe came in second with over 41% for November. Moreover, the NPCI has published data on bank performance.
In accordance with the data issued by the NPCI (National Payments Corporation of India), Google Pay and PhonePe collectively account for more than 82% of the market by volume and more than 86% by value. In November, Google Pay had resulted in 960.02 million transactions. This accounts for Rs.1.61 trillion, accompanied by PhonePe with 868.4 million transactions, meriting Rs.1.75 trillion. Moreover, the newly arrived WhatsApp Pay has completed 300,000 transactions in November for Rs.13.87 crore. Paytm’s UPI transactions in November account for 260 million, worth Rs.28,986.93 crore.
NPCI charges a 30% cap on third-party payment apps for UPI transfers
Many large players, like Amazon Pay, had reached 37.15 million transactions worth Rs.3,524.51 crore. Additionally, NPCI’s own BHIM app had reached 23.56 million transactions, worth Rs.7,472.20 crore. Moreover, Google Pay, PhonePe, Paytm, and Amazon Pay account for 96.17% of the UPI market by volume and 94% by value.
However, apart from the booming financial sector, Cryptocurrencies are playing a prominent role in India. A poly chain-based Indian crypto exchange CoinDCX, published a report to learn how Indian investors determine to fund in cryptocurrencies. CoinDCX report emphasizes 68% of the respondents earning above Rs. 10 lakh p.a. advocating legal and regulatory clarity as a fundamental solicitude for investing in crypto.
Recently, NPCI inflicted a 30% cap on third-party payment apps on whole volume transactions processed via UPI. Various people criticized this move for extinguishing competition in the UPI space. Google Pay said that it would have implications for millions of users utilizing UPI for their daily payments. It could affect the further appropriation of UPI.
Nevertheless, the existing third-party app providers processing over 30% of transactions will have two years from January 2021 to comply with them in a phased way. Both Google Pay and PhonePe will have to comply with the NPCI’s regulations and bring down the percentage in UPI transactions to below 30% in the next two years.
Analysts consider this move to derail the concentration risk from one or two players that currently rule the UPI market share to ensure that the new players are provided equal opportunity. Experts contemplate WhatsApp joining the market; these third-party apps would face intense competition, given it previously has a huge user base.
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