The Market Dominance of PhonePe and Google Pay will continue.

In November 2020, the NPCI issued rules covering the portion of exchanges taken care of by third-party application providers (TPAPs) at 30% each.

According to bankers, the standards were designed to reduce the risk of a single point of failure. When Yes Bank was banned in March 2020, PhonePe needed to temporarily switch banks because its exchanges were handled by UPI.

At the hour of giving the directions, it was broadly expected that new players like WhatsApp and Amazon Pay would increase their payment activities.

In any case, Amazon Pay has figured out how to get just a 0.8% market share, while WhatsApp has just 0.1%. After Paytm, which has a 15% portion of the overall industry, none of the applications have a market share above 1%.

Assuming NPCI implemented the caps right away, it would bring about UPI exchanges contracting emphatically. "We are clearly feeling better to see the UPI market share cap stretched out by two years. "Regardless, when the market share cap was proclaimed in November 2020, we at least a few times fought the idea since it is totally outside the realm of possibilities for any market segment to reduce their own part of the general business without successfully denying client help," said PhonePe Chief and Pioneer Sameer Nigam. To diminish UPI's market share to 30%, PhonePe would be compelled to deny

Many Indians have access to UPI payment administrations. The new NPCI circular itself recognises that the burden is on other existing and new UPI players to contribute additional time, exertion, and cash to expand their own UPI market share.

"Fall that, the natural market share of members in the UPI business won't change altogether, and NPCI will have to continue to broaden the market cap endlessly," said Nigam.

As per NPCI, "the course of events for the consistency of existing TPAPs surpassing the volume cap is stretched out by two years, until December 31, 2024," considering "the current use and future ability of UPI and other appropriate factors."

It went on to say that, given the vast capacity of computerised installments and the requirement for multifold infiltration at its current stage, it is critical that other existing players (banks and non-banks) expand their buyer outreach in order for UPI to develop and achieve market balance.