Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Kamonasish Aayush Mazumdar, Founder & CEO at Foodieverse
- Mr. Amit Lakhotia, Angel Investor, BharatPe
- Mr. Piush Kothari, Head of Business Operation, Walt Disney Direct to Consumer & International
- Mr. Arun Tanksali, Co-founder & CTO, Nearex
- Mr. Jaideep Pawar, former Associate Director-Sales, Euronet Worldwide
- Mr. Subbiaa Olimuthu, former Product Manager – RuPay Product
- Mr. Neeraj Chandra, Head of Operations and Technology, India, Abu Dhabi Commercial Bank
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
Recently NPCI announced a 30 percent cap for TPAPs (Third Party App Providers) such as Google Pay, PhonePe. PSP and TPAP shall ensure that the total volume of transactions initiated through the TPAP shall not exceed 30% of the overall volume of transactions processed in UPI during the preceding three months (on a rolling basis). The aforesaid cap shall be applicable with effect from January 1, 2021. [1]
- Now that’s really strange – how will the TPAPs achieve a reduction below 30% of the total?
- So, window dressing one way or the other in order to show compliance with no real impact on the market?
- Maybe sell to the most aligned decacorn? that can only increase concentration rather than spread it out.
- Is NPCI creating a favorable environment and business case for companies planning to launch NUE? Is this an attempt to create an opportunity for the inner circle?
- A member opines, “We can allow creating a monopoly-like situation in telco but are worried about a TPA having more than 30% share.”
- Another member states, “I can’t think of a rational way for anyone, in any industry, to plan to reduce the market share in any period of time. I am sure there will be an ownership linkage somewhere – if the goal is true to reduce concentration”
- Well, the goal seems to reduce concentration in some players.
Now let’s see the viewpoints of some members;
- A member says, “It seems to be a very strange restriction. The sponsor banks have to enforce it, but how without the live volumes. My understanding from this is that the expectation is to restrict the monthly numbers of any TPAP to 30% of the last 3 months average of the total transactions.”
- Restrictions are at the overall transaction level of UPI. Say for example October they breached 2 billion transactions, before that 1.8 billion and 1.75 billion so the average is 1.86 billion transactions. So none of the TPAP can breach the 560 million transaction limit.
- While another member mentions, “NPCI should ideally have done capping when it was implemented. This is unconstitutional and would be set aside if challenged. This may be to prevent WhatsApp UPI from superseding other PSP.”