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India’s payments regulator is expected to decide from Monday whether to do so limit the dominance of Walmart’s PhonePe and Google in the country’s fastest-growing digital payments market, a move that could change the way a growing number of billionaires exchange money.
The decision starts with UPI, or Unified Payments Interface, a network supported by more than 50 banks that has revolutionized the way Indians pay for everything from food to taxi rides. The platform handles more than 13 billion transactions per month, making it one of the highest paying networks in the world. Also, it is the most popular way for Indians to do it online.
The issue is whether the National Payments Corporation of India, which goes to India’s central bank, will impose a ban on companies from doing so. not more than 30% of all UPI transactions.
Law, first it is given in 2020It would particularly affect Walmart’s PhonePe, which accounts for 47.8% of all UPI payments, and Google Pay, which accounts for 37.1%.
Uncertainty has plagued PhonePe’s plans to go public. beginning, its value is $12 billion and backed by Walmart, it would be one of the biggest IPOs in India. PhonePe co-founder and CEO Sameer Nigam said in August that the startup would not go public “if there is uncertainty on the regulatory side.”
“If you’re buying a share at Rs 100 and you’re buying the price assuming we have a 48-49% market share, then there’s uncertainty as to whether and when it will go down to 30%,” said Nigam (pictured above) at a fintech conference. “We are asking them (the manager), if they can find another solution to their concerns or tell us what is on the list of problems.”
This news also covers the growth of many fintech startups that are trying to get deeper into digital payments. If the administrator puts restrictions on PhonePe and Google Pay to allow new users to rise or check the amount of money they are making, many other startups will find reasons.
The regulator wants to delay reimposing the cap or could raise the limit beyond 40%, people briefed on the matter told TechCrunch. The agency has already pushed back the deadline several times, from January 2021 to 2023, then to 2025, as it struggled with implementation. It has held discussions with many stakeholders as recently as last week during the election.
Limiting market share will affect the consumer experience, some of the people said.
These developments reflect India’s efforts to balance technological innovation with market competition. UPI has been the cornerstone of Prime Minister Narendra Modi’s push to digitize India’s economy and reduce its dependence on cash. The system allows instant transfers between bank accounts using simple identifiers such as phone numbers, making them easier to access than traditional banks.
The share market may be one of India’s most important ventures in the tech sector, which has attracted significant investment from global companies such as Walmart, Google, and Meta. These companies see India, with its young, increasingly digital population, as an important market.
