NPCI Removes UPI Onboarding Limit for WhatsApp Pay

The National Payments Corporation of India (NPCI) has removed the unified payments interface (UPI) user onboarding cap for WhatsApp Pay. This decision enables the Meta-owned platform to extend UPI services to its entire user base in India, marking a significant milestone in its growth.

Previously, WhatsApp Pay was allowed to onboard users gradually, with an initial cap of 100 million users. However, with the new policy, the NPCI has lifted all restrictions, allowing seamless integration for WhatsApp's vast user base.

Regulatory Compliance and Expansion

The NPCI emphasized that WhatsApp Pay must continue adhering to all existing UPI guidelines and circulars applicable to third-party app providers (TPAPs). This ensures that the platform maintains high security and compliance standards as it scales up its operations.

A Shift in Regulatory Policy

The removal of onboarding restrictions marks a major regulatory shift for the NPCI, which had previously limited WhatsApp Payment’s rollout. With over 500 million users in India, WhatsApp Pay now has the potential to significantly influence the country’s digital payments ecosystem.

Adding to this development, the NPCI has deferred the proposed rule to limit any single app’s UPI transaction share to 30% until December 31, 2026. This deferment further supports WhatsApp Pay's ability to expand without immediate market share constraints.

UPI's Transformative Growth in India

The UPI platform processes over 13 billion transactions monthly, with Google Pay and PhonePe holding a combined market share of more than 85%. Between January and November this year, UPI facilitated 15,547 crore transactions valued at ₹223 lakh crore, showcasing its pivotal role in transforming India’s financial landscape.

Since its launch in 2016, UPI has revolutionized financial access, empowering over 300 million individuals and 50 million merchants to conduct seamless digital transactions. This remarkable adoption underscores the platform's transformative impact on India's economy.

NPCI’s Vision for a Digital Economy

The NPCI continues to lead innovations in retail payment systems by leveraging advanced technology to create secure and accessible payment solutions. With a focus on nationwide inclusivity, the NPCI aims to transform India into a fully digital society at minimal costs.

By enabling platforms like WhatsApp Pay to expand, the NPCI aligns with India's aspiration to achieve a comprehensive digital economy. The organization remains committed to fostering a future where digital payments are integral to the nation's financial ecosystem.

Conclusion

The NPCI’s decision to remove the UPI user onboarding cap for WhatsApp Pay marks a significant step toward expanding digital payments in India. By lifting these restrictions, WhatsApp Pay is now positioned to tap into its vast user base, potentially transforming the landscape of UPI transactions. This move, coupled with the deferral of the proposed cap on UPI transaction share, underscores a forward-looking regulatory approach that accommodates growth and competition within the digital payments ecosystem.

With UPI continuing to gain momentum, processing billions of transactions monthly, India’s shift towards a fully digital economy is well underway. The NPCI’s role in driving innovation, securing payment solutions, and ensuring nationwide accessibility is crucial to this transformation. As WhatsApp Pay extends its reach and new players enter the market, India is poised to further solidify its position as a global leader in digital financial inclusion.