Phone Pe irony
Phone Pe reported close to 1.3 billion transactions across its platforms last month. It’s India’s first player to cross the billion mark by volume on UPI
Digital transfers through unified payments interface (UPI) more than doubled over the past year, hitting 2.73 billion this March from 1.25 billion a year earlier, shows data from National Payments Corp. of India (NPCI). Separately, Phone Pe reported close to 1.3 billion transactions across its platforms last month. It’s India’s first player to cross the billion mark by volume on UPI, it said.
Such a feat, one would think, ought to be celebrated by any player. But Phone Pe might not be feeling all that celebratory. The two numbers for March suggest that it may have shot past the 30% volume cap that NPCI has placed on UPI market share for individual players, given its success as a UPI brand, though it has other services too. If so, it would have unenviable choices to make. Scaling back, for example, by turning customers away. Or acting in other ways that let a rival push ahead. The irony of a company falling victim to its own success won’t be lost on anyone. Bizarre as it is for a regulator to expect a business to restrict itself and, that too, in relation to its rivals, this is how regulation sometimes gets done, sadly. With good intensions, such as foiling a monopoly, yielding bad rules.
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2 min read . 01 Apr 2021
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