CUTS Centre for Competition, Investment & Economic Regulation (CUTS C-CIER) is implementing a study on ‘Competition Assessment in Digital Payments Infrastructure Sector’. The study intends to understand and analyse the competition and regulation of infrastructure/ technology providers in the digital payments space.
The Government of India is undertaking several initiatives to promote digital payments and move from cash heavy to less cash society. Some of its initiatives include waiver of service charge levied on online payments made to the government, increasing transparency in the rates charged to merchants in case of debit/credit card transactions etc.
The National Payments Corporation of India is a premier organisation facilitating digital payments through providing infrastructure and technological back-end. Some of its services include Unified Payments Interface (UPI), Immediate Payment Service (IMPS) and Bharat Bill Payment System (BBPS).
Competition increases efficiency and reduces costs, resulting in consumer welfare. Consequently, it is necessary to understand competition and regulation in digital payments infrastructure sector in India, and highlight related impediments to optimal competition in the sector.