New NPCI guidelines bring bad news for UPI-only e-wallets

Must Read

Howdy, Modi! : World media reactions on Modi-Trump’ grand Houston Event address

New Delhi, Sep 23: United States President Donald Trump and Indian Prime Minister Narendra Modi on late Sunday shared...

Howdy Modi : Modi-Trump mark history in US-India relationship with great show at Houston

Houston, Sep 22:  Modi, delivering his speech at the historic event, talks about the development underwent over five years...

ECI announces dates of Maharashtra & Haryana elections; Single Phase Election on October 21; Result on 24th

Election Commission of India has announced the dates of much-awaited state elections. According to the Chief Election Commissioner, Sunil...
New Delhi, Sep 10 (IANS) PhonePe’s and Google Pay’s success ride on the back of UPI will soon hit a road
block as the National Payments Corporation of India (NPCI) is all set to introduce new guidelines for digital payment companies to minimise concentration and systemic risks in UPI.

One of the important provisions initiated by NPCI is to put a cap on the UPI market share of digital payment companies. This move directly impacts UPI-only players such as Walmart’s Phonepe, Google Pay and to be
launched Whatsapp Pay. Interestingly, Paytm is the only major player which is still backing its wallet success and cards besides UPI.

Starting April 2020, PhonePe and Google Pay will have to limit their marketshare to 33 per cent which eventually blocks their growth plans. Till now, they have been burning a lot of cash to gain the highest market share and this move comes as a major setback.

Interestingly, Morgan Stanley had recently referred Phonepe emerging as a major factor for a handsome upstick in Walmart share-prices. However, this new capping may affect the company’s valuation jump and fundraising plans as it seeks $1 billion from Tiger Global, Tencent, DST Global, Softbank and others.

A senior banker said on anonymity, “This exhibits NPCI’s raising concerns over the increasing security threats by non-banking payment companies. Phonepe will have to re-visit its business strategy for a possible fundraise at this stage.”

Other industry veterans and experts have applauded NPCI’s move and are of the opinion that this will secure the digital payments infrastructure in India.

–IANS
kr

Disclaimer This article is published directly through a syndicated feed and not edited by The Indian Wire staff.

- Advertisement -

Latest News

Thomas Cook collapses after 178 yrs in business (Lead)

London, Sep 23 (IANS) After being in business for 178 years, British travel giant Thomas Cook has collapsed, leaving...

Modi says ‘sorry’ to Senator’s wife for his absence

New York, Sep 23 (IANS) 'Howdy Modi' was not just about fiery speeches and a show of strength by Prime Minister Narendra Modi and...

Man wanted in multiple cow slaughter cases held in UP

Rampur, Sep 23 (IANS) The city police have arrested a man involved in multiple cases of cow slaughter here in Uttar Pradesh after...

Patrick Adams shares throwback snaps of ‘Suits’

Los Angeles, Sep 23 (IANS) As the finale episode of the popular show "Suits" is going to air this week, actor Patrick Adams, who...

Ravi Shankar memorabilia found in Mumbai scrap shop

By Durga ChakravartyNew Delhi, Sep 23 (IANS) SMM Ausaja, a film archivist and poster collector, has hit the goldmine in a local scrap shop...
- Advertisement -

More Articles Like This