Since the introduction of the digital payments mode in India and the UPI transfer of money, the nation has seen a massive amount of transactions in an easier manner. There are many platforms that allow such transactions amongst which Google pay and PhonePe seem to have grabbed the market well. But in the latest announcement by the NPCI, these platforms are likely to get hit majorly.
The order from NPCI
In October 2020 itself, there were almost over 2 billion UPI transactions made through different digital payment platforms. In which PhonePe alone saw a 40% transaction. Next to PhonePe was Google pay with almost 20% of the total transactions. These Platforms are not armed with bank permits and hence, the NPCI has decided to cap their limits to 30% of the total transacted value. They have allowed 2 years’ time to PhonePe and Google pay to comply with the new rules.
The common conception
While business biggies like reliance Jio and Paytm are in accord with the new rules set by NPCI, there is a common conception that this move was taken to excel in the growth of these platforms. While Paytm spokesperson welcomed the move by saying “The transactions volume cap put on various payments apps will make sure that NPCI has de-risked and diversified the UPI platform,” the reliance head was unable to comment anything. A senior executive officer of a digital payment company pointed this out and said, “This plays to the whole theory of foreign players versus Indian, at some level. Why could the NPCI not say the cap was for all players, why just the third-party app providers?”
Google criticized the move
Google has responded to this new move and the business head at Google pay India, “This announcement has come as a surprise and has implications for hundreds of millions of users who use UPI for their daily payments and could impact the further adoption of UPI and the end goal of financial inclusion.” PhonePe on the other hand, makes an attempt that these new rules do not hamper their user experience and they would try to improve their services more.
The PolicyTimes suggestion
- Since people are verily used to using such digital platforms for important transactions, this decision from NPCI may bring discomfort amongst them. It can be understood that reliance jio’s payments bank‘s introduction to the digital payments platform is affecting the other platforms. So, there must be no biasness from the authorities and every competitor must play fair.
- When there is fair competition amongst these digital payment platforms, the benefits that the users get will also increase. So, the NPCI authorities must re-evaluate their orders to allow the digital platforms to improve their performances for a better growth.
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