NPCI Announces ‘UPI New Year Gift’ for WhatsApp Users

The National Payments Corporation of India (NPCI) has lifted the user limit on WhatsApp Pay, allowing the messaging app to onboard its full user base of over 500 million to the Unified Payments Interface (UPI).

In an official announcement, NPCI revealed that the 100-million-user cap previously imposed on WhatsApp Pay has now been removed. This decision follows a gradual easing of restrictions since the platform’s launch in 2020.

Initially, WhatsApp Pay was limited to one million users, with the cap raised to 100 million in 2022. The user limit has now been completely lifted.

According to the notification from NPCI, WhatsApp Pay can now offer UPI services to its entire user base in India, following the removal of the onboarding restrictions. WhatsApp Pay is required to adhere to all existing UPI guidelines applicable to Third Party App Providers (TPAPs).

Despite the move, WhatsApp Pay has struggled to make significant inroads in the competitive UPI market. In November 2023, it processed 51 million transactions, far behind Google Pay and PhonePe, which together accounted for over 12 billion transactions.

Additionally, NPCI has postponed the implementation of market share caps for leading digital payment services by two years. Originally scheduled for 2024, the new cap, which limits firms to a maximum 30% share of UPI transaction volume, will now be enforced by December 2026.