Understanding the UPI Market Share Cap and Its Impact on Paytm and Infosys

Monday, 19 August 2024, 18:25

UPI market share cap discussions intensify as Paytm and Infosys navigate changing landscapes. Recent developments hint at challenges ahead for new UPI apps. Industry leaders are watching closely as guidelines from NPCI evolve.
Indiatimes
Understanding the UPI Market Share Cap and Its Impact on Paytm and Infosys

Challenges in Implementing the UPI Market Share Cap

The UPI market share cap implementation is unlikely before the deadline, affecting plans for Paytm, Infosys, and emerging UPI apps. Industry sources reveal that the new entrants may abandon major investments due to regulatory uncertainty. The 30% cap was proposed to ensure a diverse ecosystem, but industry experts express concerns over its technical feasibility and potential to disrupt the current market.

Market Dynamics and Player Performance

As Google Pay and PhonePe dominate with 86% market share in UPI payments, Paytm is left reassessing its transaction strategies. With 1.1 billion transactions, the competition heats up as NPsI's guidelines seem to favor established players. Meanwhile, Infosys has undertaken a bold new hiring initiative, offering attractive packages to freshers and reflecting its commitment to innovation amidst a turbulent market.

P2P Lending Sector Under Pressure

Alongside UPI dynamics, the P2P lending industry is bracing for regulatory shifts. The Reserve Bank of India's recent guidelines threaten to upend existing practices, urging platforms to adapt swiftly. This regulatory action could impact growth and operational efficiencies across the sector.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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