NPCI lifts user cap for WhatsApp Pay, enabling access to all users
New Delhi: The National Payments Corporation of India (NPCI) has lifted the user onboarding limit for WhatsApp Pay (Third Party App Provider) with immediate effect, allowing the platform to provide UPI services to its entire user base in India.
Previously, NPCI had restricted WhatsApp Pay’s UPI user base expansion to a phased approach, with a cap of 100 million users.
According to NPCI, the removal of this cap reflects the stability of the UPI ecosystem, enabling WhatsApp Pay to grow without constraints while adhering to existing UPI guidelines and circulars applicable to Third-Party Application Providers (TPAPs).
The user cap, originally set at one million in 2020 and gradually increased to 100 million by 2022, was initially implemented to ensure a smooth rollout and prevent strain on banking infrastructure.
The NPCI, an organisation established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), manages the UPI framework, acting as a key player in India's retail payment and settlement systems.
Separately, the central government has deferred the enforcement of market share caps for UPI transactions by two years.
Initially planned for implementation by the end of 2024, the deadline has now been extended to December 2026.
The proposal seeks to limit any digital payment firm’s share to 30% of the total UPI transaction volume.
Currently, PhonePe and Google Pay dominate the UPI market in India, with market shares of 47.8% and 37%, respectively, as of November 2024.
Together, they processed 13.1 billion transactions during the month. Competitors in the space include Paytm, Navi, Cred, and Amazon Pay.
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