Reportedly, an Indian parliamentary group has stressed how important it is to support the growth of domestic FinTech businesses in the nation’s digital payments industry.
As to the study released on Thursday, February 8, the panel talked about the prevalence of PhonePe and Google Pay, which together account for more than 83% of the country’s digital payments market.
A study by the parliamentary committee on communications and information technology states that PhonePe, with 46.91% of the market, and Google Pay, with 36.39%, are leading the Unified Payments Interface (UPI) industry. These two platforms have assumed the lead in the mobile payments sector, with BHIM UPI, a local player, owning a 0.22% market share.
The UPI real-time payments system was launched by the Reserve Bank of India (RBI) in 2016. It has grown in popularity and enables users to move money immediately across bank accounts.
The National Payments Corporation of India (NPCI), which oversees UPI payments, has expressed concerns about the duopoly in the mobile payments sector, according a TechCrunch article.
The NPCI had earlier recommended a market share cap to ensure that no single party handled more than 30% of UPI transactions in a given month. However, this concept has been extended to the end of 2024.
