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Not sure why this is getting downvoted. It's plainly there to help WhatsApp Pay gain traction at the expense of Google Pay, PayTM, and PhonePe

by ETHisso2017 6y ago

namanaggarwal 6y ago
I think its the opposite. The reason whatsapp was not getting approval was for the fear of monopoly. They brought this rule just before allowing WhatsApp. Also note that existing players still have time to comply but WhatsApp has to comply with this since day 1
sidchilling 6y ago
The rule being referred to, I believe, is that RBI doesn’t want any single payment app to have more than 30% market share. I believe, that’s a good thing and good to see it being thought out much earlier in the lifecycle of UPI. When it comes to people’s money, it’s in the interest of the country not to have monopolies.
- kumarvvr 6y ago
  So, lets say there are only 2 apps in the market after a few years. For what ever reasons. Do they stop doing transactions after they reach their 30% cap?
  - ffpip 6y ago
    Every bank has it's UPI app. And there are hundreds of banks in India.
    - sidchilling 6y ago
      Also by definition there won’t be. Because two apps can capture 60% market share, there’s still 40% to be captured. Free markets would incentivise people to come up with at least 2 other players, no?
- perryizgr8 6y ago
  > RBI doesn’t want any single payment app to have more than 30% market share Got it, but how do you limit an app? Does google pay simply stop onboarding new users at some point? Do my transactions start failing after a certain day of the month? Both of these are horrible UX and unfair to google pay who has developed their good user experience. If this rule is not rolled back, I predict that India's digital payments landscape will be a barren wasteland in a year's time. There is no incentive for Google or Phonepe or Paytm to continue working on an app that is guaranteed to never grow beyond where they already are. Personally, if gpay transactions become unreliable because they have to drop every 5th transaction to satisfy the quota, I'll switch back to cash.

Not sure why this is getting downvoted. It's plainly there to help WhatsApp Pay gain traction at the expense of Google Pay, PayTM, and PhonePe

namanaggarwal 6y ago

I think its the opposite. The reason whatsapp was not getting approval was for the fear of monopoly. They brought this rule just before allowing WhatsApp. Also note that existing players still have time to comply but WhatsApp has to comply with this since day 1

sidchilling 6y ago

The rule being referred to, I believe, is that RBI doesn’t want any single payment app to have more than 30% market share. I believe, that’s a good thing and good to see it being thought out much earlier in the lifecycle of UPI. When it comes to people’s money, it’s in the interest of the country not to have monopolies.

kumarvvr 6y ago
So, lets say there are only 2 apps in the market after a few years. For what ever reasons. Do they stop doing transactions after they reach their 30% cap?
- ffpip 6y ago
  Every bank has it's UPI app. And there are hundreds of banks in India.
  - sidchilling 6y ago
    Also by definition there won’t be. Because two apps can capture 60% market share, there’s still 40% to be captured. Free markets would incentivise people to come up with at least 2 other players, no?
perryizgr8 6y ago
> RBI doesn’t want any single payment app to have more than 30% market share Got it, but how do you limit an app? Does google pay simply stop onboarding new users at some point? Do my transactions start failing after a certain day of the month? Both of these are horrible UX and unfair to google pay who has developed their good user experience. If this rule is not rolled back, I predict that India's digital payments landscape will be a barren wasteland in a year's time. There is no incentive for Google or Phonepe or Paytm to continue working on an app that is guaranteed to never grow beyond where they already are. Personally, if gpay transactions become unreliable because they have to drop every 5th transaction to satisfy the quota, I'll switch back to cash.