Capping market share of UPI players to impact users, may hit adoption in future: Industry experts

New Delhi: The decision to cap market share of UPI players at 30 per cent will have implications for millions of users and even adversely impact adoption of the digital payment mechanism in the future, according to industry experts. On Thursday, National Payments Corporation of India (NPCI) said a single Third Party App Provider (TPAP) can handle only 30 per cent of overall UPI (Unified Payments Interface) transaction volumes. The cap shall be applicable with effect from January 1, 2021.

Google Pay, Walmart’s PhonePe and Paytm are among the TPAP players in the fast-growing UPI ecosystem, amid the sustained push for boosting digital payments in the country.