This year, 2020, will be remembered in the long run due to the outbreak of coronavirus. In this time period, our lifestyle changes a lot, along with regular habits. The mode of transaction is one of them. Though the initiative to promote online transactions was taken far before; massive online shopping, contactless movements, and social distancing boost the process.
Other than net banking or other methods, in India, the consumers mainly prefer UPI transaction as it’s easy, fast, and obviously secure. On top of that, third parties UPI service providers are providing so many cashback and rewards to attract users.
Till now, all the transactions are completely free. If you are one of the users and have a habit of making lots of transactions regularly, you may have to change that. According to a video report by Cobrapost, the National Payments Corporation of India or NPCI, in short, decided to apply a 30% market cap on the third-party UPI service providers. In the list, Google Pay, Phone Pay, and Amazon Pay are the well-knowns, though there are plenty more. If you are looking for Paytm in the list, let you know, as Paytm holds the license of Payments Bank, it doesn’t come under third party service provider category.
Coming to the impact users can face. According to the report, the platforms may charge some amount from the users against transactions. Now, it may be possible there will be some conditions for it. Currently, there is no particular information.
The reason described by NPCI is to restrict any monopoly of those platforms in the coming days and also to restrict on huge cash backs or rewards. It’s predicted that, as an impact, the usage of Paytm and the other apps with Payment Bank license will increase a bit.
You can check the Cobrapost video (in Hindi) here.