In November last year, NPCI, which operates the UPI infrastructure, had said starting 2021, it will cap transaction volumes processed by an entity at 30%. Google Pay and PhonePe have two years to comply with these guidelines
Bengaluru-based digital payments firm PhonePe continued its lead on Unified Payments Infrastructure (UPI) payments, clocking the highest volume of 968.7 million transactions in January, up by 7% from December 2020, and processing a total value of ₹1.92 trillion, beating rival Google Pay.
PhonePe processed close to 42% of the overall UPI transactions, which stood at 2.3 billion in January 2021, and 44% in terms of overall payment value.
Google Pay didn’t show much change in terms of transaction count as it processed close to 853.5 million (37%) UPI transactions in January, compared with 855 million in December 2020.
This comes at a time when UPI players such as Google Pay and PhonePe have been protesting against National Payments Corporation of India’s (NPCI’s) decision to cap the number of payments processed by them, to limit the damage to the payments ecosystem in case a system collapses.
Last November, NPCI, which operates the UPI infrastructure, said it will set a cap of 30% on transaction volume clocked by a player starting 2021. Players such as Google Pay and PhonePe have two years to comply with these guidelines in a phased manner.
Google Pay and PhonePe in the past have said the cap will affect the growth of UPI payments in the country, as the decision goes against principles of ‘free’ and ‘fair’ market. Paytm Payments Bank reported the third highest UPI volumes in January processing close to 281.8 million transactions.