Paytm Payments Bank Spokesperson said the proposed implementation of UPI market capping will be hugely beneficial for the UPI ecosystem.
New Delhi: India’s homegrown Paytm Payments Bank Limited (PPBL) today shared that it supports and welcomes the proposed implementation of National Payments Council of India’s (NPCI) UPI market cap, a day after it was reported by news Agency IANS that UPI payment apps like Google Pay, PhonePe, Paytm, and others may soon impose a limit on the transaction.
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“PPBL, which owns Paytm UPI, is NPCI certified PSP (Payment Service Provider) and Issuer Bank for UPI transactions, and not a Third Party Application Provider (TPAP) and won’t come under the purview of NPCI’s market cap. The Bank is an Issuer and PSP Bank in itself along with being an acquirer of UPI transactions on its own platform, and serves the customer end-to-end in a transaction,” said a company statement.
Paytm Payments Bank Spokesperson said, “We believe the proposed implementation of UPI market capping will be hugely beneficial for the UPI ecosystem. This move by the NPCI will bolster the growth of digital payments and democratize it for the citizens, ending market concentration risk. With this, UPI will become even more accessible and enable further digital adoption.”
The Bank is now enabling users to make transactions across all UPI payment apps with just the mobile number, and even if it is not registered with Paytm. With this, users can receive and send money instantly to any mobile number with a registered UPI ID across platforms using the Paytm app. This further deepens Unified Payments Interface (UPI) interoperability and roots for the adoption of mobile payments.
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IANS had reported that The National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is in discussions with the Reserve Bank about implementing its proposed December 31 deadline for limiting player volume to 30 per cent.
There is currently no volume cap, and Google Pay and PhonePe account for roughly 80 per cent of the market. In order to avoid concentration risk in November 2022, NPCI proposed a 30 per cent volume cap for third-party app providers (TPAP).
Currently, no final decision has been made to extend the December 31 deadline because the NPCI is evaluating all options.
However, the NPCI is expected to make a decision on UPI market cap implementation by the end of this month.
In 2020, NPCI issued a directive capping the share of transactions that a third-party application provider could process at 30 per cent of the volume of transactions handled on UPI, effective January 1, 2021, to be calculated based on the volume of transactions processed in the previous three months.
With IANS Inputs
