NPCI on PhonePe Google Pay Dominance: National Payment Corporation (NPCI) had announced to impose 30 percent market share capping to stop the dominance of Google Pay and PhonePe and to give opportunity to small UPI payment app players. For this, a deadline of 31 December 2024 was set. However, the question arises that what will happen after this deadline?
If we talk about online payment, PhonePe and GooglePay continue to dominate. However, the government does not want any two companies to dominate the UPI payment market in India. In such a situation, a plan of 30 percent market capping was made by the National Payment Corporation of India i.e. NPCI. In simple words, the market share of any one UPI payment app should not be more than 30 percent in India. By doing this, the UPI payment market in India can be divided among many payment apps.
The deadline of December 31 was set by NPCI. After this day, the market share of any one app should not be more than 30 percent. But in reality this does not seem to be happening. If ET’s report is to be believed, then it does not seem possible to implement it on December 31. In fact, apart from Google Pay and PhonePe, no other app is in a position to handle India’s UPI payment. Also, customers are also expressing trust in both these apps. As we know, there is less than 4 months left for the deadline of 30 percent capping. In such a situation, it does not seem possible that this deadline will be met.
No one can compete with PhonePe and GooglePay
If we talk about competition with PhonePe and GooglePay, then Paytm is the only app in India to compete with these two American companies. However, after the recent ban imposed by RBI on Paytm Payment Bank, users have shifted towards PhonePe and Paytm. At the same time, suddenly limiting GooglePay and PhonePay payments is likely to have an adverse effect on the online payment market. In such a situation, the government is not in the mood to take such a risk. In such a situation, experts believe that there may be a delay in implementing the market capping rule.
Who pays how much
Walmart owned PhonePe and Google Pay made 14.4 billion UPI payments in July. Its total share is more than 85 percent, where PhonePe made 5.9 billion UPI payments every month. Google Pay made 5.3 billion payments. While Paytm (One 97 Communications)’s platform made 1.1 billion UPI transactions, which is less than PhonePe and GooglePay. Apart from this, 142 million online payments were made using Cred.
July figures
If we talk about UPI figures of July, PhonePe is at the top of this list, while Google Pay is at the second position. While Paytm remains at the third position in this list. While Cred is at the fourth position.
Market Share
PhonePe – 48.38 percent
Google Pay – 37 percent
Paytm (OCL) -7.82 percent
Cred – 0.99 percent
Axis Bank App – 0.75 percent
How many crores of payments were made
PhonePe – 1028799.39 crores
Google Pay – 735159.2 crores
Paytm (OCL) – 123467.33 crores
Cred – 48998.89 crores
Axis Bank App – 6335.06 crores
This is how UPI payment increased
If we talk about the growth in UPI payments, then it is registering a growth of 45 percent year on year, which has increased to 14.44 billion in July 2024. At the same time, UPI volume has registered a growth of 35 percent year on year and thus it has increased to 20.64 trillion. If we believe the data of NPCI, then on an average, there has been a transaction of 466 million daily in July, which is about 66,590 crores. UPI transactions have grown at a rate of 3.95 percent in July, while volume transactions have increased by 2.84 percent during the same period.
