WhatsApp Pay gets NPCI nod for nationwide UPI user expansion

Previously, NPCI allowed WhatsApp Pay to increase its UPI user base in phases, with a cap of 100 million users. This restriction has now been lifted, enabling WhatsApp Pay to expand its services without limits.

WhatsApp Pay will continue to adhere to all existing UPI guidelines and circulars for Third-Party Application Providers (TPAPs), according to NPCI.

In 2020, NPCI imposed a user cap of one million on WhatsApp Pay, which was gradually raised to 100 million by 2022.

This cap has now been fully removed. The initial restrictions were put in place to ensure a smooth rollout and avoid overburdening the banking infrastructure. With the UPI ecosystem now more stable, NPCI has approved the removal of the cap, allowing WhatsApp Pay to expand its user base.

The National Payments Corporation of India (NPCI), established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), serves as the umbrella organisation for retail payment and settlement systems in India. NPCI oversees the Unified Payments Interface (UPI) framework.

On Tuesday, the central government announced a two-year delay in implementing market share caps for UPI transactions, providing relief to major players like Google Pay and Walmart-backed PhonePe.

The proposal, introduced in November 2020, seeks to limit any digital payment firm’s market share to 30% of the total UPI transaction volume. Initially set to be enforced by the end of 2024, the deadline has now been extended to December 2026, according to an NPCI statement.

Currently, PhonePe and Google Pay dominate the UPI payment space in India. As of November 2024, PhonePe held a 47.8% share, while Google Pay accounted for 37%.

Together, they processed 13.1 billion transactions in the same month, regulatory data revealed. Other competitors include fintech platforms such as Paytm, Navi, Cred, and Amazon Pay.

(With PTI, Reuters inputs)

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