Growing concerns over market concentration in India’s digital payments space have prompted major tech firms to push for a more level playing field within the UPI ecosystem.
Companies including Amazon and Meta are set to engage with the National Payments Corporation of India (NPCI), which operates the Unified Payments Interface, to raise concerns over the dominance of PhonePe and Google Pay.
Executives from platforms such as Amazon Pay, WhatsApp, CRED, MobiKwik, and Flipkart’s Super.money are expected to participate in discussions with NPCI.
The meeting comes more than a year after India deferred plans to cap the market share of UPI apps at 30% until December 31, 2026. The delay has allowed PhonePe and Google Pay to maintain their stronghold, raising concerns among smaller players about fair competition.
Data from NPCI shows that PhonePe and Google Pay together accounted for nearly 80% of the 22.6 billion UPI transactions recorded in March. This significantly outpaces competitors such as Paytm, Super.money, CRED, Amazon Pay, and MobiKwik.
PhonePe recently crossed 700 million registered users and 50 million merchants across India, with acceptance spanning over 98% of postal codes, highlighting its extensive reach.
According to details reviewed ahead of the meeting, companies plan to raise issues around user acquisition practices, product design, and monetisation within the UPI ecosystem. Proposals include restrictions on how dominant platforms onboard users and access contact data, along with calls for fair access to features like autopay and payment mandates.
They are also expected to seek regulatory support and incentives to help smaller and emerging players compete more effectively.
While these firms are pushing for changes, NPCI—operating under the supervision of the Reserve Bank of India—faces the challenge of addressing market concentration without disrupting services used by millions of users.
It remains uncertain whether the discussions will lead to immediate regulatory action, as questions persist around how dominance in the UPI ecosystem can be balanced with stability.
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