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Paytm crisis brings 30% market share cap plan back in focus

Economic Times · 1y

The recent action taken by the banking regulator against Paytm Payments Bank has brought the proposal for a market share cap for UPI apps back into focus. Currently, PhonePe and Google Pay dominate the UPI market, but the troubles faced by Paytm could benefit these two players even more. The National Payments Corporation of India (NPCI) is expected to seek RBI's approval before allowing any migration of merchants or banking partners from Paytm to other UPI apps. This situation may further consolidate the market share of the top two players.