NPCI Angry With PhonePe and Google Pay: Why is NPCI angry with PhonePe, Google Pay, why are new UPI apps being launched?
NPCI Angry With PhonePe and Google Pay: Nowadays, almost everyone uses UPI payments in their daily lives. Although most of us are familiar with Google Pay and Phone Pay, a number of new UPI apps have just been released. What, after all, is the cause of this?
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NPCI Angry With PhonePe and Google Pay
Using PhonePe, Google Pay, or Paytm UPI to make payments is rather widespread these days. We can’t even begin to imagine our everyday routine without it. Is these businesses now the target of ire from the National Payment Corporation of India (NPCI), which offers the UPI payment service? If this isn’t the case, then why are there new UPI payment apps hitting the market every day?
In actuality, NPCI itself introduced these new UPI apps so that users could take advantage of savings on a whole new level. In addition, NPCI wants more capital to enter the UPI market. This too has a unique explanation.
85% of transactions are made using PhonePe and Google Pay
NPCI encourages users to switch to these new applications. Use these to lower the risks associated with making a lot of transactions on PhonePe and Google Pay. Currently, these two platforms account for around 85% of all UPI transactions. Even though Paytm is the biggest player in the digital payment market, it is not keeping up with the times.
ET has been stated, citing sources with knowledge of this, that NPCI maintains communication and routinely holds talks with new UPI participants. Additionally, last month, Google Pay, PhonePe, and Paytm were not invited to a conference that the NPCI hosted with startups developing UPI apps.
These New Competitors Have Entered the Market
Consider the recent occurrences: a plethora of new UPI platforms, including Cred, Slice, and FamPay, have entered the market. Also granted licences to operate UPI payment systems are Zomato, Grow, and Flipkart. Customers who make UPI payments through any of these applications can get new deals, cashback, and discounts.
Nonetheless, it is evident from these corporations’ statements that they have no intention of investing much in this platform to attract new UPI users. Cred is still providing decent rewards in this area. Furthermore, a marketing campaign is under underway.
The Usage of PhonePe and Google Pay is Growing
Based on data from March, there has been a rise in the number of transactions made using Google Pay and PhonePe. Google Pay has grown by 6.3 percent, while PhonePe has grown by 5.2 percent. However, this is the first instance of a single-digit growth in company data.
