Amazon, Meta Lobby NPCI to Curb Google Pay and PhonePe Dominance in India’s UPI Ecosystem
Executives from Amazon and Meta will meet the National Payments Corporation of India to address the dominance of PhonePe and Google Pay in the Unified Payments Interface ecosystem. Rival firms seek regulatory changes to improve competition as the two apps control about 80% of transactions. Authorities face a challenge balancing market fairness with system stability.
Executives from major global and domestic technology firms, including Amazon and Meta, are scheduled to meet with the National Payments Corporation of India on Thursday to discuss the market dominance of PhonePe and Google Pay. The meeting follows growing concerns over the concentration of power within India’s Unified Payments Interface ecosystem, where two apps currently process the majority of transactions.
The group of companies, which also includes CRED, MobiKwik and Flipkart’s Super.money, plans to push for regulatory changes aimed at creating a more level playing field in the fast-growing instant payments network. UPI Turns 10: India’s Digital Payments System Sees 12,000-Fold Surge in Volume, Over 4,000 Times Growth in Value Since Launch.
UPI Market Share Concerns as PhonePe and Google Pay Dominate
The UPI network, operated by the NPCI, processed 22.6 billion transactions in March alone. However, data shows that PhonePe and Google Pay together accounted for around 80% of those transactions. PhonePe recently highlighted its scale, stating it has crossed 700 million registered users and 50 million merchants, covering more than 98% of India’s postal codes.
Rival platforms argue that this dominance makes it difficult for smaller players to compete. Although India had proposed a 30% market share cap for UPI apps, the plan has been deferred until December 31, 2026, allowing current leaders to maintain their position for now.
UPI Competition Issues and Demands for Fair Access to Features
The companies are expected to raise several issues related to user acquisition and product design. These include possible limits on how dominant apps onboard new users and use contact data, as well as calls for equal access to key UPI features such as autopay and payment mandates. They are also likely to seek regulatory support and incentives to help smaller platforms grow, along with discussions on monetisation within the UPI ecosystem.
NPCI and RBI Face Challenge Balancing UPI Growth and Regulation
The NPCI, which operates under the supervision of the Reserve Bank of India, faces a complex challenge in addressing market concentration. While there is a need to promote competition, regulators must also ensure that changes do not disrupt a system used daily by hundreds of millions of people. Big Change in Digital Payments Likely: RBI Considers Delayed Credit Rule to Prevent High-Value Transaction Frauds.
Smaller players are increasingly seeking intervention, but it remains uncertain whether the meeting will lead to immediate policy changes. The outcome could shape whether India develops a more diverse payments ecosystem or continues with the current dominance of a few major platforms until the 2026 deadline.
(The above story first appeared on LatestLY on Apr 30, 2026 08:15 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
