The National Payments Corporation of India (NPCI) has lifted the 100 million user cap on WhatsApp Pay, allowing Meta to expand its payment service across its 500+ million user base in India. Additionally, the NPCI has postponed the implementation of a market share cap for UPI apps until December 2026. These regulatory changes aim to boost competition in India’s digital payments sector, currently dominated by PhonePe and Google Pay.
The National Payments Corporation of India (NPCI), the governing body for UPI (Unified Payments Interface), has announced key regulatory changes to foster competition in India’s digital payments sector. These include lifting the 100 million user cap on WhatsApp Pay, a payment service by Meta, and delaying the 30% market share cap for UPI apps until December 31, 2026.
This move allows WhatsApp Pay, which was previously restricted, to offer its services to Meta’s 500+ million users in India, strengthening its position against dominant players PhonePe (47.8%) and Google Pay (37%).
Regulatory Changes to Boost Competition
Introduced in 2020, WhatsApp Pay initially faced restrictions to ensure the stability of UPI transactions. The cap gradually increased to 100 million users by November 2022. Now, with the restriction lifted, Meta can aggressively expand WhatsApp Pay’s adoption across India.
However, WhatsApp Pay still faces challenges, as only 7-8 million out of its 100 million registered UPI users are actively transacting. Experts believe entrenched consumer habits favoring existing players may slow adoption.
Market Share Cap Deferred to 2026
Another major policy shift is the postponement of the 30% transaction limit for individual UPI apps, originally planned for 2024. With PhonePe and Google Pay controlling over 85% of UPI transactions, this delay provides relief to these firms while allowing new entrants time to establish their presence.
UPI’s Global Expansion
Since its launch in 2016, UPI has revolutionized digital payments in India, now processing over 15 billion transactions monthly. The Indian government is also expanding UPI’s reach internationally, with the service currently available in seven countries, including UAE, Singapore, and France.
With WhatsApp Pay’s expansion and UPI’s global push, India’s digital payment landscape is set for transformative growth.
