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Amazon, Meta join fight to end Google Pay, PhonePe dominance in India
Amazon and Meta are lobbying India's National Payments Corporation to address the dominance of PhonePe and Google Pay in the UPI market, which together account for about 80% of transactions. The NPCI previously deferred a market share cap of 30%, allowing these apps to strengthen their positions. Concerns include user acquisition and fairness in access to UPI features as smaller rivals seek competitive support.
Key points
- Amazon and Meta, along with other companies, are meeting the NPCI to discuss Payment app dominance in India.
- PhonePe and Google Pay control approximately 80% of UPI transactions, limiting competition.
- The NPCI delayed a planned market share cap, which would have limited UPI app dominance.
- PhonePe boasts over 700 million users and is integrated with more than 98% of India’s postal codes.
- Proposals from the meeting include fair access to UPI features and restrictions on dominant players' user acquisition methods.
Why it matters
- The rise of digital payments has been a significant trend due to the increasing penetration of smartphones and internet connectivity.
- Similar anti-monopoly concerns exist globally, as regulators scrutinize big tech companies like Google and Amazon.
- India's proactive stance in digital payment regulations may influence similar moves in other emerging markets by 2025.
The lobbying efforts by Amazon and Meta signify a crucial step in promoting competition within India's payment landscape, seeking to balance market power with user access and innovation, particularly crucial in the rapidly evolving fintech industry.