National Payments Corporation of India (NPCI) has extended the deadline for all the Third Party App Providers (“TPAPs”) to comply with its 30% cap requirement. Earlier NCPI, in order to prevent the concentration of UPI volumes in the hands of few players (Google Pay, Phone pay being the major players) has issued a cap of 30% of total volume of transactions processed in UPI. Deadline fixed for TPAP for adhering with 30% cap requirement was December 31, 2022 but taking into account the present usage and inconvenience that may be caused to public and other relevant factors NPCI has extend the deadline by two years i.e till December 31, 2024.
The cap of 30% will be calculated on the basis of total volume of transactions processed in UPI during the preceding three months (on a rolling basis).
Presently Google Pay, Paytm and Phone pay share approximately 96% of monthly UPI Volumes. The users of these TPAP’s will be adversely affected owing to difficulty in making payments due to 30% cap. NPCI must consider the hardships that may be faced by users while framing guidelines for proving level playing field to all the UPI players.