A group of Indian digital payment companies has opposed a proposed one-click UPI checkout framework, warning that it could strengthen the dominance of larger payment platforms and reduce competition in the country’s fast-growing digital payments ecosystem.
According to a letter dated July 23 and reviewed by a news agency, the companies urged the National Payments Corporation of India (NPCI), which manages the UPI network, to reconsider the proposal. They stated that the framework could “adversely impact” competition in the market.
The signatories include Paytm, Meta-backed CRED, Flipkart’s Super.money, and several other digital payment firms. Neither the NPCI nor the companies immediately responded to requests for comment.
The proposed system, referred to as UPI Meta or UPI Checkout, would allow customers to save their preferred UPI ID or linked bank account with merchants. This would remove the need to choose a payment app for every transaction. Instead, users would complete payments directly through PIN or biometric authentication, similar to using saved card details during online checkouts.
The companies argued that once users save a preferred UPI option, they are unlikely to switch to another payment app. In the letter, they said, “The proposed framework is expected to materially increase persistence of customer preference towards the (third party apps) selected during the initial setup process.”
UPI processed more than 227 billion transactions worth over ₹28 trillion in June, according to NPCI data, making it one of the world’s largest real-time payment networks. PhonePe and Google Pay together account for around 80% of all UPI transactions.
The concentration of transactions among a few major platforms has already been a concern for the payments regulator. In 2020, the NPCI proposed limiting the market share of any single UPI app to 30%, but the implementation has been delayed multiple times. The current compliance deadline is December 2026.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.