The Third-Party Application Provider (TRAP) issued guidelines discouraging monopoly by limiting the Market Capitalization to 30% per payment app

The policy was first blazoned in November ’20 and the deadline for the same was January 21.

But the Pandemic National Payments Corporation of India (NPCI) had to push the deadline to another time.


Still, On March 21, NPCI outed the working module of the 30% market capitalization, claiming that the limit will be calculated grounded on the total volume of deals on UPI during the former three months by a player, on a rolling base. That’s, If any UPI app reaches a market capitalization of 25%, it’ll admit an alert from NPCI. ‘

At 27%, second alert and thereby have to give facts of the way that it’ll take to cleave to the 30% limit. However, it would be disallowed to onboard new guests, If traduced the 30% mark. Yet, there are still several constraints and questions regarding the same.
NPCI is looking to extend January’23 deadline too due to the fear of market dislocation as UPI’s operation is adding & putting restrictions on similar may hinder client experience.
Presently PhonePe and Google Pay are holding over 80% of the UPI market shar exclusive of new entrants similar to WhatsApp Pay, etc. And According to the Data, in May 2022, UPI crossed the INR 10 Lakh Cr mark and In April 2022, PhonePe held 49% of the market, while Google Pay bagged 35% of the market cap. Paytm was third in line, with a 10.7% market share.
Over the past four months, the percentage market share of these apps has remained harmonious, but their number has increased significantly. Therefore, the apps have no plans in decelerating down.
Indeed NPCI officers believe that unless other players similar as Paytm, Amazon Pay, WhatsApp Pay, or BHIM rise & prisoner the market suddenly, it’s still doubtful that NPCI will be able to apply the said restriction by January 2023.