Several Indian digital payments firms have opposed a proposal to enable one-click checkouts on the Unified Payments Interface network.
According to Reuters, companies including Paytm, Meta-backed CRED, and Flipkart's Super.money have told the National Payments Corporation of India (NPCI), which oversees the UPI network, that a proposed one-click checkout framework could entrench the dominance of larger payment apps and reduce competition in the sector.
Details of the proposal
The framework, referred to as UPI Meta or UPI Checkout, would allow customers to save a preferred payment handle or linked bank account with a merchant, removing the need to select a payment app for each transaction. Under the current system, users choose their preferred UPI app at the point of purchase. However, under the proposed model, customers would instead proceed directly to authentication using a PIN or biometric verification, a process similar to how saved card details are used for expedited checkouts.
In a letter dated 23 July 2026 and reviewed by Reuters, the signatory companies argued that the framework is expected to increase the persistence of customer preference towards the third-party app selected during the initial setup process. They added that once a customer saves a UPI ID for payment, that choice is unlikely to change, making it more difficult for smaller apps to compete for the same customer base. NPCI and the named companies did not immediately respond to requests for comment.
UPI processed more than 227 billion transactions worth over USD 289.94 billion in June 2026, according to NPCI data, making it one of the most widely used real-time payment networks globally. Walmart-backed PhonePe and Alphabet's Google Pay together account for roughly four-fifths of total UPI transaction volume, a concentration that has previously drawn regulatory attention.
Regulatory background
NPCI introduced a plan in 2020 to cap the market share of any single UPI app at 30%, but implementation has been delayed multiple times. The current compliance deadline for the market-share cap is set for December 2026. In addition, the opposition to the one-click checkout proposal comes as NPCI continues to weigh measures aimed at reducing concentration risk within the UPI ecosystem, while also considering product changes intended to improve the checkout experience for consumers and merchants.
The outcome of the consultation is likely to influence how competitive dynamics evolve within India's UPI network, particularly for smaller payment apps seeking to expand their user base against two dominant incumbents.
