The Indian Parliamentary Panel has expressed considerations concerning the rising dominance of overseas UPI apps like Google Pay and PhonePe. Each apps are used broadly by Indians for UPI transactions, which isn’t excellent news for the native apps. Owing to this, the Parliament is pushing the utilization of native apps such because the BHIM UPI.
Google Pay, PhonePe dominance is regarding for NPCI
Again in 2020, the Nationwide Funds Company of India (NPCI), which regulates the Unified Funds Interface (UPI) said {that a} single funds app shouldn’t have greater than 30 p.c market share.
“The committee notes that fintech corporations, apps and platforms comparable to PhonePe and Google Pay owned by overseas entities dominate the Indian fintech sector,” mentioned the Parliamentary Panel in a report tabled in Parliament Thursday.
Google Pay and PhonePe are persevering with to develop available in the market. PhonePe, for the unversed, has backing from Walmart and it’s the majority stakeholder within the firm.
As per NPCI, PhonePe and Google Pay had a complete UPI market share of just about 83 p.c between October-November2023. The previous was on the lead with round 46 p.c market share, Google Pay coming second with round 36 p.c market share.
“The UPI market share was 36.39% for Google Pay and 46.91 for PhonePe when it comes to transaction quantity in October-November 2023.”
Paytm Funds Financial institution had a market share of 13 p.c, adopted by others having a 5 p.c UPI market share. The indigenously developed app, BHIM UPI’s market share stood at solely 0.22 p.c.
Having mentioned that, the native apps are beneficial to be promoted.
“The committee recommends that there ought to be deal with promotion of native Indian gamers within the fintech universe, Indigenously developed BHIM UPI is an effective instance of it, nonetheless its share within the UPI market could be very low.”
The current RBI ban on Paytm Funds Financial institution has fearful over 47 million retailers throughout the nation. It’s sufficient to point out how little dominance may shake up the market.
Taking this as a chance, the rival platform BHIM UPI introduced a cashback provide to lure new prospects. The provide supplies as much as Rs 750 cashback when doing transactions by a bank card.
Other than this, the BHIM app additionally supplies a slew of options much like different funds apps like Paytm, PhonePe, and Google Pay. This consists of bank-to-bank funds, Scan & Pay, and extra.
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