NPCI extends UPI market cap deadline to December 31, 2024, in a relief to PhonePe, Google Pay

The National Payments Corporation of India (NPCI) has extended the deadline for Unified Payments Interface (UPI) players to adhere to a market cap of 30 percent by two years to December 31, 2024.

The guidelines requiring each UPI third-party app to adhere to a 30 percent transaction volume cap were first introduced in November 2020.

"Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs who are exceeding the volume cap, is extended by two (2) years i.e. till December 31, 2024 to comply with the volume cap," NPCI said in a statement.

Currently, three players – PhonePe, Google Pay, and Paytm – control approximately 97 percent of UPI volumes.

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