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NPCI in talks with Fintech companies to promote competition
The National Payments Corporation of India (NPCI) is taking steps to address the dominance of Google Pay and PhonePe in the Unified Payments Interface (UPI) market. These two platforms control 86% of UPI transactions, raising concerns about a lack of competition.
- Market Share Concerns: PhonePe and Google Pay control 86% of UPI transactions.
- NPCI Seeks Balance: NPCI is in talks with fintech companies to find ways to increase competition.
- RBI Weighs Incentives: The Reserve Bank of India is considering incentive programs to support smaller players.
NPCI Engages Fintech Firms
To address this imbalance, NPCI engages with representatives from various fintech companies, including CRED, FamPay, and Amazon. These discussions aim to develop strategies for increasing UPI transactions on their platforms.
RBI Considers Incentives
The Reserve Bank of India (RBI) has also expressed concerns about the dominance of Google Pay and PhonePe. The RBI is exploring the possibility of implementing incentive schemes to make UPI more attractive for users of other platforms. This approach aligns with recommendations from a parliamentary panel to support domestic fintech companies offering alternatives to Google Pay and PhonePe.
Collaboration for a Balanced Market
The NPCI and RBI‘s actions highlight their commitment to fostering a more balanced and competitive UPI ecosystem. By working together with fintech companies and potentially introducing user incentives, these regulatory bodies aim to create a more diverse digital payments landscape in India.
