“NPCI Lifts User Cap, Allowing WhatsApp Pay to Expand UPI Services Nationwide”
WhatsApp Pay has received approval from the National Payments Corporation of India (NPCI) to lift the previous cap on its UPI user base, allowing the service to expand its reach to all users in India. This marks a significant milestone for the popular messaging platform, which has seen gradual growth in its UPI services since its initial launch.
WhatsApp Pay has received approval from the National Payments Corporation of India (NPCI) to lift the previous cap on its UPI user base, allowing the service to expand its reach to all users in India. This marks a significant milestone for the popular messaging platform, which has seen gradual growth in its UPI services since its initial launch.
Previously, NPCI had limited WhatsApp Pay’s UPI user base to 100 million users, introducing the restriction in phases to ensure a smooth integration with India’s banking infrastructure. However, with the UPI ecosystem now stabilized, NPCI has decided to remove the cap, enabling WhatsApp Pay to offer UPI services to its entire user base across the country.
In a statement, NPCI confirmed the change and stated that WhatsApp Pay will continue to comply with all existing guidelines for Third-Party Application Providers (TPAPs) as part of the UPI framework. The shift in policy allows WhatsApp Pay to further extend its services to users, ensuring more access to the digital payments ecosystem.
The journey of WhatsApp Pay’s expansion began in 2020 when the NPCI initially imposed a user cap of just one million. This cap was gradually raised to 100 million by 2022, reflecting WhatsApp Pay’s increasing role in the UPI payment landscape. The decision to lift the cap entirely comes as part of efforts to enhance the overall stability of the UPI system.
NPCI, which oversees the Unified Payments Interface (UPI), was established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to facilitate digital payments and settlement systems in India.
In related developments, the central government recently announced a two-year delay in implementing market share caps for UPI transactions, a move that benefits digital payment giants like Google Pay and Walmart-backed PhonePe. The proposal, which seeks to limit any digital payment provider’s market share to 30%, was initially set to take effect by the end of 2024. However, the deadline has now been extended to December 2026. Currently, PhonePe and Google Pay dominate the UPI space, with PhonePe holding a 47.8% share and Google Pay accounting for 37%, according to regulatory data from November 2024.
With WhatsApp Pay’s expansion and other major players in the market continuing to grow, the UPI ecosystem is poised for continued evolution, reshaping the digital payments landscape across India.
Sources By Agencies
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