As digital payments are gaining pace amid the digitalisation, UPI is at the forefront of payment options. According to an IANS report, UPI payment apps like Google Pay, PhonePe and Paytm, among others, are likely to soon impose a limit on the transaction. Currently, there is no volume cap in UPI transactions, and PhonePe, Google Pay and Paytm — command 94.6 per cent of the overall UPI market.
Following this, users may not be able to make unlimited payments via UPI payment apps. 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, according to the IANS report.
The NPCI proposed a 30 per cent volume cap for third-party app providers (TPAP) in order to avoid concentration risk in November 2022.
A large number of payment platforms are there in India that are using unified payments interface (UPI), including GPay, PhonePe, Paytm and BHIM, and are competitors to each other. In October, transactions through UPI rose 7.7 per cent to 730 crore and the total value stood at more than Rs 12.11 lakh crore. In September, there were 678 crore UPI-led digital transactions worth Rs 11.16 lakh crore.
Four apps — PhonePe, Google Pay and Paytm — command 94.6 per cent of the overall UPI market.
PhonePe had the highest share in total UPI transactions in India with 49 per cent pie in October, according to data from the National Payments Corporation of India (UPI). PhonePe was followed by Google Pay with 34 per cent share, Paytm (11 per cent), CRED Pay (1.8 per cent) and others (WhatsApp, Amazon Pay and banking apps) with 3.5 per cent share.
The number of instant interbank fund transfer through IMPS (Immediate Payment Service) in October stood at 48.25 crore and the value was at Rs 4.66 lakh crore. In terms of transactions, it was higher by 4.3 per cent compared to September, according to the latest monthly data from the National Payments Corporation of India (NPCI).
Among the payment service providers (PSPs), Yes Bank in October recorded the highest volume with 265.5 crore UPI transactions, followed by Axis Bank with 119.5 crore transactions, ICICI Bank (107.5 crore), Paytm Payments Bank (101.9 crore) and State Bank of India (73.5 crore).
SBI in its report has said that over the years, the Indian cash-lead economy now has changed to a smartphone-led payment economy. A lower currency in circulation also is akin to a CRR cut for the banking system, as it results in less leakage of deposits and it will impact monetary transmission positively.
Read all the Latest Business News here
Comments
0 comment