Tech giants such as Google, Facebook and Amazon are reportedly trying up with Indian companies to set up a rival against NPCI. In an attempt to counter the national payment commission of India (NPCI) dominates them and giving a great competition in the field of transactions and UPI payments. Amazon is still approaching to explore many options for their daily transactions while Google and Facebook are said to have approached Reliance Jiofor the services and google being a smarter industry will believe on reliance because of great services and operations. This whole agenda is very trending and becoming a hot topic and it comes after NPCI in its notification said that from January 2021 onwards, there would be a 30% cap on the total volume of UPI transaction and this done by third party app providers because it gives a trustable service but the question is will they able to provide best solution for it or not. According to the notification, existing TPAPs will get two years, starting in January 2021, to company with new norms in a phased manner. In the digital payment landscape, the new entrants however being notable among WhatsApp pay, the 30% cap will be applicable from January 2021.
The NPCI’s decision is highly criticized by Google pay and phone pay, the decision would hinder the nation’s burgeoning digital payments economy and it may also slow down the process of transaction and may harm the small part of emerging economy. According to NPCI more than 2.07 Bn UPI transactions were processed in the month of October this is a very huge number and we cannot ignore this figure. According to October 2020 figures, flipkart owned phone pay has a 42% market share in terms of the total volume of UPI transactions, followed by Google Pay at 41%. The remaining share is distributed amongst Paytym and Mobikwik. There is an exciting market for goggle, Facebook and amazon in India and now they are coming with something new which is called a joint venture partnership in which they will collaborate and provide services according to the mutual need of an individual. Reliance Jio emerged as the clear favorite and will be the most first priority.
A lot of domestic applicants have also reached out to these global giants for a JV and it is too early to say which way they will they will grow and in which direction. A new umbrella entity license is going to apply by the start ups and companies. It will allow them to set up their own pan-India retail payment networks. Digital world is full of technology and speed transactions so if the desired speed is not received by users they will refuse it which results in the loss of revenue generation and also ladder down the economy, meanwhile the companies and start ups are planning to make a whole new structure but for that consumers must understand the benefit to use it. Currently this domain is monopolized by the NPCI which was set up by the RBI and the Indian bank association in 2008 as a non-profit entity. Its offerings include UPI, NFS, Aadhar- enabled payment system and IMPS. On the contrary, the NUE can be used for profit.
