July 12 2022: The Unified Payments Interface (UPI) has become one of the most successful initiatives of the Indian government and has made sending and receiving money relatively easy.
There are over 50 third-party UPI apps, registered till end June 2022. Together, they accounted for 5.8 billion transactions with a total value of over Rs 10 lakh crore during the month.
PhonePe and Google Pay have emerged as the biggest players in the UPI market and account over 81% of the volume and 84% of the transaction value.
Walmart owns PhonePe, and Google owns the payment app Google Pay. One of the other leading UPI apps is Amazon Pay, which Amazon owns.
The National Payments Corporation of India (NPCI), the regulatory body that oversees UPI operations, had earlier introduced guidelines for third-party apps such as PhonePe, Google Pay, Paytm, and others that mandate that any one third-party app should not hold more than 30% of the market share.
The guidelines issued by NPCI are scheduled to be implemented in January 2023. However, PhonePe and Google Pay are reportedlylobbying to extend the deadline as they will not be able to comply with the cap on the market share.|
Regulators and some lawmakers lawmakers are becoming wary of a strong duopoly in the market of foreign-owned entities.There is such a thing as being too good at what you do -- or so it seems!
(Business Insider thru MSN news and Times of India)