[sidchilling]

The rule being referred to, I believe, is that RBI doesn’t want any single payment app to have more than 30% market share. I believe, that’s a good thing and good to see it being thought out much earlier in the lifecycle of UPI. When it comes to people’s money, it’s in the interest of the country not to have monopolies.

[perryizgr8]

> RBI doesn’t want any single payment app to have more than 30% market share

Got it, but how do you limit an app? Does google pay simply stop onboarding new users at some point? Do my transactions start failing after a certain day of the month? Both of these are horrible UX and unfair to google pay who has developed their good user experience.

If this rule is not rolled back, I predict that India's digital payments landscape will be a barren wasteland in a year's time. There is no incentive for Google or Phonepe or Paytm to continue working on an app that is guaranteed to never grow beyond where they already are.

Personally, if gpay transactions become unreliable because they have to drop every 5th transaction to satisfy the quota, I'll switch back to cash.

[kumarvvr]

So, lets say there are only 2 apps in the market after a few years. For what ever reasons.

Do they stop doing transactions after they reach their 30% cap?

[ffpip]

Every bank has it's UPI app. And there are hundreds of banks in India.

[sidchilling]

Also by definition there won’t be. Because two apps can capture 60% market share, there’s still 40% to be captured. Free markets would incentivise people to come up with at least 2 other players, no?