Home / Business and Economy / Amazon, Meta Lobby India on UPI Dominance
Amazon, Meta Lobby India on UPI Dominance
30 Apr
Summary
- Amazon and Meta lobby India's payments body over dominant apps.
- PhonePe and Google Pay hold 80% of UPI transactions.
- Rivals seek fair competition and regulatory support.
Major technology companies including Amazon and Meta are set to engage with the National Payments Corporation of India (NPCI) to discuss the significant market share held by PhonePe and Google Pay within the nation's instant payments system, the Unified Payments Interface (UPI).
This meeting follows a decision made over a year ago to postpone capping market share for UPI apps at 30% until December 31, 2026. Consequently, PhonePe and Google Pay have maintained their leading positions, processing around 80% of UPI's 22.6 billion transactions in March. Rivals are finding it increasingly challenging to compete with their extensive reach and user acquisition strategies.
During the scheduled meeting, participants like Amazon and Meta are expected to voice concerns over user acquisition tactics, app design, and revenue generation within the UPI ecosystem. Proposals may include limiting how dominant apps onboard users and use their data, ensuring equitable access to features like autopay, and requesting incentives and regulatory assistance for smaller competitors.
The NPCI, which operates under the Reserve Bank of India, faces the complex task of addressing market concentration without disrupting services for millions of users. The outcome of the discussions and potential changes to curb dominance remain uncertain.
