npci

Efforts to Limit Mobile Payment Supremacy of PhonePe and Google in India

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UPI, built by a coalition of Indian banks, has become the most popular way Indians transact online, processing over 10 billion transactions monthly. In February, a parliamentary panel in India urged the government to support the growth of domestic fintech players that can offer alternatives to the Walmart-backed PhonePe and Google Pay apps. The NPCI has long advocated for limiting the market share of individual companies participating in the UPI ecosystem to 30%. The RBI is also weighing an incentive plan to create a more favorable competitive field for emerging UPI players, another person familiar with the matter said. Indian daily Economic Times separately reported Wednesday that the NPCI is encouraging fintech companies to offer incentives to their users, promoting the use of their respective apps for making UPI transactions.

India’s Paytm Obtains License for Third-Party App Following Restrictions Imposed on Bank Unit

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The third-party application provider license will enable Paytm to offer payments through the UPI network even as Paytm’s parent firm One97 Communications’ banking unit — Payment Payments Bank — is scheduled to cease operations on Friday. The Reserve Bank of India ordered Paytm in late January to cease operations at Paytm Payments Bank, an affiliate of the financial services firm that processed majority of its transactions. The move created shockwaves through the industry, and also meant that Paytm needed to secure the third-party application provider license to continue many of the Paytm app’s operations. Axis, HDFC, State Bank of India and Yes Bank will serve as payment system provider to the Paytm app, NPCI said Thursday. The RBI had advised NPCI to swiftly issue the third-party application provider license, or TPAP, to Paytm to help mitigate disruptions for its customers.