How will the cap on UPI transactions impact us?

The Unified Payments Interface (UPI) helps instantly transferring funds. They are the interfaces which are used in apps like Paytm, Google Pay, etc. Now, these transactions are being capped.

The National Payments Corporation of India (NPCI) has changed their UPI policy by announcing that the maximum number of transactions through apps will be capped. This has severely impacted such apps' bottom lines. This means that every apps' market share will be controlled. Apps cannot have more than 50% of the market share in the first year, and then shrinking it down to 44% in the second, and 33% in the third year. 33% will be maximum limit after three years of the cap being implemented.

They are doing this to allow monitoring, controlling, and no monopolies to be present in the market. This capping process has vairous impacts based on the size of every app. Google Pay has the market share above 40% currently. If the firm's market share goes to 50%, then having new consumers on board will be barred. Thus, new consumers/transactions will not be possible. As the years go by, the amount of people allowed on apps would shrink further, and mostly people would be forced to join new apps while eliminating their transactions in the older ones.