
Digital payment companies, including Google Pay, PhonePe, Amazon Pay, and the National Payments Corporation of India (NPCI), are urging the government to exempt them from certain provisions of the Digital Personal Data Protection (DPDP) Act that mandate explicit user consent for each transaction.
The Digital payment companies argue that the DPDP rule will increase operational costs, create workflow disruptions, and add compliance burdens—especially for smaller fintechs and startups.
Under the DPDP Act, recurring payments such as utility bills or subscription renewals would require fresh consent each time, potentially undermining the convenience and automation central to digital payments.
Industry players warn this could lead to user fatigue, slower transactions, and higher abandonment rates.
The additional authentication layers would also raise infrastructure and compliance expenses, dis-proportionately affecting smaller firms with limited resources.
Citing Section 17(5) of the Act, which allows exemptions for upto 5 years, the industry is seeking temporary relief to design alternative consent mechanisms that uphold privacy without stifling digital innovation.
NPCI has emphasized protecting startups from costly system overhauls while still ensuring security and regulatory compliance.
Moving forward, without such adjustments, payment firms warn of reduced competitiveness, increased costs for consumers, and potential slowdown in India’s booming digital payments ecosystem.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.