What Is UPI Meta and Why Are Smaller Payment Apps Raising Concerns?

Smaller payment apps have reportedly urged NPCI to reconsider UPI Meta, warning that it may strengthen PhonePe and Google Pay’s control of online payments.

Smaller digital-payment companies have reportedly asked the National Payments Corporation of India (NPCI) to reconsider the planned launch of UPI Meta, warning that the proposed checkout feature may further strengthen PhonePe and Google Pay’s position in India.

UPI Meta is designed to simplify online payments by allowing customers to save a preferred UPI ID on a merchant’s app or website. While this may shorten the checkout process, smaller platforms fear that users will primarily save IDs linked to the two largest UPI apps.

NPCI has not publicly announced the feature’s final rollout schedule

or detailed implementation rules.

What Is UPI Meta?

UPI Meta is reportedly being developed as a faster checkout system for online purchases. It would allow customers to securely save a preferred UPI ID with participating merchants, avoiding the need to choose an app or enter payment details during every transaction.

The process would operate in a manner similar to tokenised cards saved on shopping platforms. Once consent is provided, a customer could use the stored UPI identity to initiate subsequent payments more quickly.

NPCI reportedly sees the feature as a way to keep UPI competitive with tokenised card payments and upcoming services such as Apple Pay, particularly when combined with biometric authentication.

Why Smaller UPI Apps Are Concerned

Smaller payment apps reportedly believe UPI Meta will favour platforms that already have large user bases. PhonePe and Google Pay together process roughly four-fifths of UPI transactions in India, giving them an advantage when customers choose which UPI ID to save.

Once a preferred payment option is stored, customers may have little reason to switch apps during future purchases. This may reduce the visibility of services such as Amazon Pay, CRED, MobiKwik, Navi and Super.money at merchant checkouts.

Smaller companies have therefore urged NPCI to introduce safeguards that preserve user choice and prevent merchants or payment gateways from prioritising a particular provider.

PhonePe and Google Pay Continue to Lead UPI

PhonePe remains India’s largest UPI app by transaction volume, followed by Google Pay. Paytm holds the third position, while the remaining platforms account for a considerably smaller portion of overall payments.

NPCI previously introduced a 30 percent transaction-volume cap for individual third-party UPI apps to address market-concentration concerns. However, its implementation has been repeatedly deferred, with the current deadline extending to the end of 2026.

What UPI Meta Means for Users

For customers, saved UPI IDs may make online purchases faster by removing repeated steps from checkout. However, the system’s impact will depend on how clearly merchants present alternative apps and obtain consent.

The final framework will also need to address privacy, data storage, interoperability and the process for changing or removing a saved UPI ID. NPCI is yet to publicly detail these protections or confirm when UPI Meta will become available.