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After The Launch of WhatsApp Pay India Witnesses A New Limit On The Use Of Other UPI Payments

Image Source: PayU

National Payments Corporation of India (NCPI) stated, “no third party is allowed more than 30 percent of all UPI transactions. This move could work in favor of Whatsapp. However, it is most likely going to affect Gpay and PhonePe in the worst way possible.

Just a day prior to the NPCI giving WhatsApp Pay a green signal in a restricted manner; for now, the payments app allowed to have a total of 20 million UPI users in India. The nodal agency for retail payment broke out a new rule. It would impact big payment apps like Google Pay or PhonePe.  The rule states that “no third-party app part of the UPI payment system will be able to carry out more than 30% of all UPI transactions”. The volume of transactions will be measured and the rule will be effective from January 1, 2021.

The sole purpose of this restriction is to protect the UPI ecosystem. NCPI suggests that capping transactions will give rise to a competitive market. However, this rule is only applicable to apps like Google Pay. Additionally, also the other apps that are not part of the banking network. As apps like Paytm have a banking license, they aren’t considered to be a part of third-party app providers (TPAP).

WhatsApp will use UPI to offer its payment service to users. And for utilizing its payment gateway, it is collaborating with five renowned banks in India. A few months from now, we will know how WhatsApp Pay has affected other payment apps. The ones who have been there in the market for a while now.


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