The NPCI has removed the user limit for onboarding on WhatsApp Pay, granting the platform the ability to provide UPI services to its entire user base in India.
- Previous Restrictions: WhatsApp Pay’s UPI user base was capped at one million in 2020, later raised to 100 million by 2022.
- Reason for Cap: The restrictions were imposed to ensure a phased rollout and prevent banking infrastructure overload.
With the UPI ecosystem now stabilized, NPCI has decided to lift the cap entirely. WhatsApp Pay will continue adhering to UPI guidelines and circulars for Third-Party Application Providers (TPAPs).
Broader UPI Context
The NPCI, under the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), oversees UPI—a critical retail payment framework in India.
Recent updates in the UPI landscape include:
- Market Share Caps Delayed:
- The central government has postponed the enforcement of market share caps for UPI transactions to December 2026.
- This delay provides relief to dominant players like PhonePe (47.8% market share) and Google Pay (37%), which together processed 13.1 billion transactions in November 2024.
- Rising Competition:
- Competitors in the UPI space include Paytm, Navi, Cred, and Amazon Pay, alongside WhatsApp Pay’s expanding footprint.
Implications for WhatsApp Pay
The lifting of user limits positions WhatsApp Pay as a strong contender in the Indian UPI market. With its integration into the widely-used messaging app, WhatsApp Pay can leverage its massive user base to challenge established platforms like PhonePe and Google Pay.
Outlook
As the UPI ecosystem grows, the entry of a fully-enabled WhatsApp Pay could further intensify competition, benefiting users through enhanced services and innovations in the digital payments space.
