NPCI Removes User Cap on WhatsApp Pay, Expanding UPI Access to 500 Million Users
The National Payments Corporation of India (NPCI) has lifted the user cap for WhatsApp Pay, enabling the messaging app to connect its entire user base of over 500 million to the Unified Payments Interface (UPI). This marks a significant shift from the previous limit of 100 million users, allowing WhatsApp Pay to offer UPI services to all its users in India immediately.
Initially launched in 2020, WhatsApp Pay was limited to one million users. This limit was raised to 100 million in 2022 and has now been completely removed. Despite this development, WhatsApp Pay must comply with existing UPI guidelines and regulations for third-party app providers (TPAPs).
NPCI noted this decision as part of its broader efforts to expand digital payment adoption. However, WhatsApp Pay has struggled to establish a strong foothold in the competitive UPI market. In November 2023, it processed 51 million transactions, compared to the combined 12 billion transactions handled by market leaders Google Pay and PhonePe.
Additionally, NPCI has deferred the enforcement of market share caps for digital payment platforms by two years, now set to take effect in December 2026. Initially proposed in November 2020, these caps aim to limit any digital payment provider to a maximum of 30% of the total UPI transaction volume. This postponement provides additional time for major players like Google Pay and PhonePe to adjust to the new regulations.
