Paytm Faces New Hurdles as NPCI Revises UPI Compliance Timeline

3 Jan 2025 , 09:44 AM

Paytm shares declined by almost 4% to ₹976.5 on BSE during trading on Wednesday due to the deadline extension for cap on UPI market share, NPCI. The National Payments Corporation of India has extended its compliance timeline with third-party application providers to 31 December 2026.

The market share cap was originally set to begin by December 31, 2024. It is also expected to maintain fair competition for UPI payments. As per the figures of November 2024, PhonePe was the dominant player in the UPI payment market with 47.8% market share followed by Google Pay with 37%. The two processed 13.1 billion transactions during the month.

NPCI has also waived off all the restrictions on WhatsApp Pay and has unrestricted user onboarding for its UPI product. In November, WhatsApp Pay processed 51.76 million transactions worth ₹3,890 crore and ranked 11th among the UPI service providers. With over 500 million users in India, WhatsApp Pay has the potential to disrupt the UPI ecosystem, and the competition will increase for Paytm.

NPCI is a company created by RBI and IBA that oversees the retail payment systems of India, thus ensuring safe and efficient processing of transactions. Market capitalization of the stock is₹62,626 crore The 52-week trading range is between ₹310-1,063. On January 1st, Paytm was one of the biggest losers of the BSE Midcap index.