Indian Payment Firms Oppose One-Click UPI Checkout Proposal

Several Indian digital payment firms have opposed a proposal by the National Payments Corporation of India (NPCI) that would allow merchants to store customers' preferred Unified Payments Interface (UPI) option for one-click checkouts, arguing it could entrench the dominance of larger payment apps.

Details of the Proposal

The proposal, revealed in a July 23 letter reviewed by Reuters, would enable merchants to save each customer's preferred UPI option, eliminating the need to select it each time. Opposing firms argue this could strengthen the dominance of major apps like Google Pay and PhonePe.

Companies' Stance

In their letter to NPCI, the companies warned that the proposal could "adversely impact" competition in India's digital payments market. Neither NPCI nor the companies immediately responded to Reuters' requests for comment.

Context

UPI is the most popular digital payments system in India, dominated by a few apps. The proposal comes as regulators seek to balance innovation with protecting competition.

Potential Financial Impact

If implemented, the proposal could increase the market share of dominant apps, limiting opportunities for startups and smaller competitors. It may also attract additional regulatory scrutiny from India's competition authority.