UPI is a popular payment platform, on which UPI payment platforms like PhonePe and Google Pay are based. However, PhonePe and GooglePe currently dominate this entire market, which the Indian government wants to reduce. More than 10 billion UPI transactions are happening every month in India.
UPI is a popular payment platform in India. If we talk about UPI payment, PhonePe and Google Pay dominate in India. This means that about 80 percent of the UPI payment market is occupied by PhonePe and Google Pay. After the ban on Paytm, there is a possibility of a sharp increase in the market share of Google Pay and PhonePe, about which the government has become a little cautious.
More than 10 billion transactions monthly
As it is known that both PhonePe and Google Pay are American tech companies. In such a situation, the government does not want the Indian UPI market to be occupied by only two American UPI companies. In such a situation, the government is making a new plan, so that the influence of American companies can be reduced. Let us tell you that more than 10 billion UPI transactions are taking place every month in India.
30 percent capping system
National Payment Corporation of India i.e. NPCI does not want the dominance of only a few companies in the UPI market. In such a situation, UPI payment service can be limited to 30 percent. This can reduce the dominance of Walmart-backed PhonePe and Alphabet’s Google Pay.
PhonePe and Google Pay will end
Recently, a parliamentary panel demanded to support domestic fintech firms, so that the dominance of PhonePe and Google Pay can be reduced. This proposal came at a time when the Central Bank had closed Paytm. Real-time digital payment system UPI was launched in the year 2016. About 500 banks are included in the UPI network. More than 70 million merchants are doing more than Rs 10 billion transactions every month.
