India Stumped on How To Cut Google and Walmart-backed PhonePe Dominance in Payments

An anonymous reader shares a report: India is facing a quandary in enforcing long-delayed rules to curb the dominance of PhonePe and Google Pay in the country's ubiquitous UPI payments network, which processes over 10 billion transactions monthly. The National Payments Corporation of India (NPCI), a special unit of the Indian central bank, wants to limit the market share of individual companies in the popular Unified Payments Interface (UPI) system to 30%, a long-delayed effort to curb the dominance of Walmart-backed PhonePe and Alphabet's Google Pay, which together control over 83% of the growing payments market.

However, with rival Paytm now struggling after strict regulatory action, the NPCI faces an acute challenge in bringing down the commanding share of the leading duopoly: It doesn't know how to. The NPCI officials believe there is a technical barrier to achieving the goal and have sought industry players in recent quarters for ideas, two sources familiar with the situation said. The NPCI, which delayed enforcing the rules to 2024, declined to comment Tuesday.

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