The National Payments Corporation of India (NPCI) has extended the compliance deadline for the UPI market cap rule by two years, moving it to December 31, 2026.
This decision gives time to Third-Party Application Providers (TPAPs) that currently exceed the market share cap to align with the regulatory framework.
As per the rule introduced by NPCI in 2021, no single UPI application should account for more than 30% of the total volume of UPI transactions. This guideline was implemented to prevent market monopoly, foster healthy competition, and ensure the stability of the UPI ecosystem.
Platforms such as Google Pay and PhonePe, which collectively dominate a significant portion of the UPI market—around 80%—will benefit from the additional time.
The payments body has also removed onboarding limits for Meta’s WhatsApp Pay, paving its way for growth in India,
Initially, when WhatsApp Pay launched, the platform could onboard only a fraction of UPI users. NPCI gradually increased the cap, reaching 100 million users by November 2022. Now, the platform can offer the service to its 500-million-strong user base in the country.
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