Google Pay, the Global leader in the platform of online payments has hit back at the National Payments Corporation of India (NPCI) over its policy to limit the share of third party app at 30 percent. G- Pay has criticized the move by saying that the current decision can become a hindrance in the burgeoning of the nation’s digital payment economy.
Google pay, the giant tech leader holds a monthly market share of 40 percent on United Payments Interface (UPI).
Google pay comment has come after the National Payments Corporation of India (NPCI) which manages UPI announced on Thursday that it won’t allow third-party payments app to process more than 30 percent share of transactions on state-backed United Payments Interface (UPI) Framework. A day before it has allowed WhatsApp to go live with 20 million users. The new policy will be implemented from January 1.
According to sources, NPCI is unlikely to change or modify the regulations.
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Companies such as PhonePe and Google, which currently exceed NPCI's stipulated cap, will get two years to comply with the new rules.
"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," Sajith Sivanandan, Business Head at Google Pay, India, said in a statement.
Here it is to be noted that the current caps by NPCI are not applied on Reliance’s Jio payments bank or to Paytm, which have a niche banking license and doesn’t fall under the category of ‘third party apps’ category.