The National Payments Corporation of India (NPCI) has announced the extension of the deadline where third party UPI players had to fulfill the 30 percent volume cap in digital payment transactions. The extension was announced for a period of two years to end-December 2024.
The decision is being seen as a welcome relief to third party app providers (TPAP) such as Google Pay and Walmart's PhonePe that hold a majority share in UPI-based transactions.
NPCI operates the Unified Payments Interface (UPI) which is used for real-time payments for making purchases or between peers. NPCI announced in November 2020 about a limit a single third-party app can handle only to the tune of 30 percent of overall UPI transaction volumes. The deadline was expected to take effect from January 1, 2023.
