UPI Transactions: Foreign companies dominate UPI, parliamentary committee recommends support to domestic companies

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UPI Transactions: Foreign companies dominate UPI, parliamentary committee recommends support to domestic companies
UPI Transactions: Foreign companies dominate UPI, parliamentary committee recommends support to domestic companies

PhonePe and Google Pay: The parliamentary committee has said in its report that BHIM app holds only 0.22 percent share. The government should promote Make in India in the digital payment market.

PhonePe and Google Pay: Apps like PhonePe and Google Pay dominate the UPI transactions in the country. These companies have about 83 percent share in the digital payments market of the country. The ownership rights of both these fintech companies are in foreign hands. Now a challenge may arise for both these companies. A parliamentary committee has recommended the government to support domestic fintech companies in the digital payments sector.

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Concern over ownership rights by foreign companies

In its report, the parliamentary committee has expressed concern over digital payments platforms owned by foreign companies. The committee has said that the government should try to find alternatives to these apps. Also, local companies should be provided opportunities to progress in this sector. This 58-page report of the committee has come at a time when Paytm Payments Bank is facing strict action from RBI. His banking services have been stopped. Due to this, many problems have arisen in front of Paytm.

The condition of BHIM UPI is bad

According to the parliamentary committee report, PhonePe had 46.91 percent share in the UPI market till November 2023. Google Pay also remains firmly at second position with 36.39 percent share. BHIM UPI, developed in the country, has only 0.22 percent market share. This is the reason that even in terms of UPI transaction value, PhonePe and Google Pay win.

Market share limit should be 30 percent

National Payments Corporation of India (NPCI), the company that manages the UPI payments network, had also recently expressed concern over this dominance. NPCI wants that the maximum limit of market share should be increased to 30 percent. For the first time, NPCI made this attempt in 2020. She wants Make in India to be promoted in the fintech sector also.

Benefit from action against Paytm

Due to the strict action of RBI, the number of users of Paytm is decreasing. On the other hand, in a recent report it was claimed that the downloads of PhonePe, BHIM App and Google Pay are increasing rapidly. Apart from this, Airtel Payments Bank has also benefited from the action taken against Paytm Payments Bank.

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