NPCI has removed Cap for WhatsApp UPI
The National Payments Corporation of India (NPCI) has lifted the user onboarding cap for WhatsApp Pay, allowing the platform to offer Unified Payments Interface (UPI) services to its entire user base in India. This decision, announced on December 31, marks a major milestone for WhatsApp Pay, which can now extend its payment services to over 500 million users in the country.
Gradual Rollout to Ensure Security and Scalability
When WhatsApp Pay was first launched, NPCI implemented strict user onboarding limits to ensure a phased and secure rollout. This cautious approach was designed to monitor scalability, performance, and security in India’s sensitive digital payments ecosystem. Initially, WhatsApp Pay could onboard only a small percentage of UPI users, with the cap gradually increased over time.
In November 2022, the cap was raised to 100 million users. With the latest development, the onboarding limit has been completely removed, enabling WhatsApp to fully integrate its payments feature with its massive user base.
WhatsApp’s Vision for Digital Payments
Expressing excitement about the update, a WhatsApp spokesperson said:
“We’re committed to making payments on WhatsApp simple, reliable, and secure. Our goal is to add value and convenience to users’ lives through use-cases like bill payments, ticket booking, and shopping. We aim to accelerate digital payments and UPI adoption, contributing to India’s digital and financial inclusion agenda.”
The removal of the cap is expected to help WhatsApp leverage its widespread popularity in India to promote UPI adoption further, enhancing digital payment penetration in both urban and rural areas.
NPCI Extends Market Cap Deadline
Alongside this development, NPCI has also extended the deadline for compliance with the UPI market cap rule by two years, until December 31, 2026. According to this rule, no single UPI app should hold more than 30% of the UPI payments market.
This extension provides additional time for third-party app providers (TPAPs) to adjust to the regulatory requirements.
A Boost for India’s Digital Payments Ecosystem
The removal of WhatsApp Pay’s user cap and the extended market cap deadline reflect NPCI’s efforts to balance growth and security in India’s fast-growing digital payments landscape. As WhatsApp Pay scales its operations, it is expected to play a significant role in advancing financial inclusion and promoting the use of digital payments across the country.
