UPI market share cap delay likely to keep online payments pie unchanged

A proposed 30% market share cap in the Unified Payments Interface (UPI) segment is looking unlikely, said industry executives, with only a little over four months to the deadline. Several UPI newcomers have been told informally that the limit is unlikely to be put into effect and, accordingly, have started redrawing growth and investment plans, people briefed on the matter said. At least four recent entrants confirmed this to ET.

ET reported on April 17 that new entrants have been withholding major investments in UPI, waiting to get a sense of the market share rule. PhonePe and Google Pay dominate UPI payments.