IANS
The National Payments Corporation of India (NPCI) has lifted the user onboarding limit for WhatsApp Pay, a third-party app provider (TPAP). This decision, effective immediately, allows WhatsApp Pay to extend its Unified Payments Interface (UPI) services to its entire user base in India.
Previously, the NPCI had permitted WhatsApp Pay to expand its UPI user base in a phased manner, with a cap of 100 million users. However, with the recent notification, the NPCI has removed this limit, enabling WhatsApp Pay to onboard more users.
The Meta-owned platform, which boasts over 500 million users in India, is expected to see a significant increase in its user base following this decision. WhatsApp Pay, like other TPAPs, is required to comply with all existing UPI guidelines and circulars. The NPCI, an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association, is an umbrella organization for operating retail payments and settlement systems in India.
IANS
The NPCI has also deferred a proposed rule to cap any single app’s UPI transaction share at 30 per cent until December 31, 2026. This move is expected to further boost the growth of digital payments in India. The UPI platform, launched in 2016, has revolutionized financial access in India. It processes over 13 billion transactions monthly, with Google Pay and PhonePe controlling more than 85 per cent of the market. From January to November this year, the UPI recorded 15,547 crore transactions worth Rs 223 lakh crore, highlighting its transformative impact on financial transactions in India.
The UPI has enabled 300 million individuals and 50 million merchants to perform seamless digital transactions, according to a study by IIM and ISB professors. The platform’s safety, quick transfer, easy operation, and government backing have drawn users to it, leading to a significant expansion of consumer credit among underserved borrowers with no credit history.
In a related development, the NPCI has extended the market cap deadline by another two years. This comes as the UPI continues to record impressive growth, with a 45% year-on-year growth in October 2024, handling 16.58 billion transactions worth ₹23.49 lakh crore. The lifting of the user onboarding limit for WhatsApp Pay is expected to intensify competition in the UPI market. Currently, Flipkart-owned PhonePe leads the UPI apps, with 740 million transactions amounting to ₹10.88 lakh crore. Google Pay follows closely, clocking 573 million transactions worth ₹7.64 lakh crore. Paytm, with 107 million transactions amounting to ₹1.18 lakh crore, is a distant third.
