The National Payments Corporation of India has extended the deadline for implementing a 30% cap on any company's share of transactions on UPI to December 31, 2026, reflecting ongoing regulatory uncertainty in the sector.
The decision provides temporary relief to Walmart-backed PhonePe and Google Pay, which together handle more than 85% of transactions on UPI, and is critical as PhonePe considers its IPO amid regulatory challenges.
Officials engaged in extensive discussions with industry leaders throughout the year regarding market share limits but struggled to develop a solution that wouldn't disrupt the consumer experience.
The UPI network, which processes over 13 billion transactions monthly, is central to India's digital economy, and maintaining service effectiveness while limiting market share remains a significant challenge for regulators.
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