Walmart-backed PhonePe asks NPCI to extend the volume cap deadline

With this move, NPCI was aiming to reduce the concentration risk in the system and potentially curb the dominance of two large players while ensuring other players also get a chance to grow

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PhonePe processed almost 48 per cent of the transactions done through Unified Payments Interface (UPI) in August

4 min read Last Updated : Sep 18 2022 | 10:12 PM IST

With a little over three months until the volume cap norm on existing third-party application providers (TPAPs) kicks in, Walmart-backed PhonePe has requested the National Payments Council of India (NPCI) to extend the deadline, saying such a move could potentially curtail the growth of digital payments in the country.

“We have formally requested NPCI for an extension on the market cap implementation as we believe that an artificial market cap implementation will severely limit the growth of the digital ecosystem and will impede the goals of financial inclusion,” said a PhonePe spokesperson.

PhonePe processed almost 48 per cent of the transactions done through Unified Payments Interface (UPI) in August, the latest data by NPCI shows. PhonePe and Google Pay put