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With Unified Payments Interface (UPI) transactions in the country hitting close to 2.2 billion in the month of November, Google Pay continued to hold its dominant position recording 960 million transactions on its app, while garnering close to 43.4% of UPI market share, showed data from National Payments Corporation of India (NPCI).

In comparison, between October to November, Google Pay also added close to 100 million transactions to its platform. It had registered close to 857.8 million transactions in the month of October.

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On the other hand, WhatsApp Pay which had received the green signal from NPCI in the first week of November is onto a slow start, garnering close to 310,000 transactions, last month.

Taking on the second spot was Benglauru-based PhonePe, which registered close to 868.40 million transactions in November, garnering almost 39% of the market. Other prominent platforms included - Paytm Payments Bank closing 260 million transactions, clocking almost 11.7% market share and Amazon Pay registering close to 37.15 million transactions, last month.

The top three players, including Google Pay, PhonePe, and Paytm command over 94% market share in UPI, at present.

When it comes to the total value of transactions on UPI, PhonePe emerged as the leader, powering close to 1.75 lakh crore of transactions in November, as Google Pay closely relayed with 1.61 lakh crore transactions registered on its platform.

In the overall mix, peer-to-peer (P2P) payments accounted for 60% of the overall transaction count on UPI in November, while peer-to-merchant (or P2M) transactions contributed to 40% of the overall mix, standing at 885.55 million transactions.

NPCI, which operates UPI, in the country, last month announced that it will issue a cap of 30% on transaction volume clocked by a player starting 2021.

The cap of 30% will be calculated on the total volume of transactions processed in UPI during the preceding three months. The existing player or third-party app providers (TPAPs) exceeding the specified cap, will have a period of two years from January 2021, to comply with the same in a phased manner.

This move has been heavily criticised by market leaders Google Pay and PhonePe which believed that the cap is against the ‘free market’ principles of UPI, and can hinder the growth of the payment infrastructure in the country.

“Digital payments in India is still in its infancy and any interventions at this point should be made with a view to accelerate consumer choice and innovation. This announcement (on UPI cap) has come as a surprise and has implications for hundreds of millions of users who use UPI for their daily payments and could impact the further adoption of UPI and the end goal of financial inclusion," said Sajith Sivanandan, Business Head, Google Pay and Next Billion User initiatives, India earlier, last month.

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