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New Delhi, NFAPost: The UPI transactions of the Third-Party App providers like Google Pay, Phone Pe will now come under 30% cap as set by the National Payments Corporation of India (NPCI), which will come into place from January 2021.

According to the NPCI, Unified Payments Interface (UPI) has exceeded two billion transactions. Now, the NPCI has put a cap on the proportion of transactions that a single company can process, in order to address the risks and protect the UPI ecosystem as it further scales up, the NPCI wrote. This will largely affect Google Pay and PhonePe, and present an opportunity for others such as Paytm and MobiKwik.

There are also concerns that by capping the number of transactions a company can do in a month, it might lead to greater failure rates of transactions.

According to a recent report, both companies account for around 40 percent of the number of transactions each. Aside from this, two other companies, Paytm and MobiKwik are together almost 20 percent of the UPI transactions. All other apps, ranging from the government’s BHIM UPI app, to the many bank apps, barely have any share.

With this new rule, the companies will see their share change – the cap of 30 percent will be calculated on the basis of total volume of transactions processed in UPI during the preceding three months on a rolling basis.

According to the announcement, the TPAs that have more than a 30 percent share will have a two year period to comply in a phased manner.

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