Srinath Sridharann’s Post

In our joint article, we highlight the pressing concern that the dominance of a few players in the UPI ecosystem poses a significant threat to India's financial inclusion efforts. As we navigate the complexities of digital payments, it is crucial to ensure that innovation does not come at the expense of equitable access for all. Request for your comments on this article. Ram Rastogi 🇮🇳

🚀 𝗜𝗻𝗱𝗶𝗮'𝘀 𝗙𝗶𝗻𝘁𝗲𝗰𝗵 𝗥𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻: 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻 𝗮𝗻𝗱 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 🚀 The incredible advancements in fintech at the Global Fintech Fest (GFF) 2024 in Mumbai, where Prime Minister Narendra Modi highlighted the groundbreaking progress India has made. 🇮🇳💡 𝙆𝙚𝙮 𝙏𝙖𝙠𝙚𝙖𝙬𝙖𝙮𝙨: 1. 𝗙𝗶𝗻𝘁𝗲𝗰𝗵 𝗚𝗿𝗼𝘄𝘁𝗵: With over $31 billion in investments and a 500% increase in startups over the last decade, India’s fintech sector is on an unprecedented growth trajectory. 2. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻: Initiatives like 𝗝𝗮𝗻 𝗗𝗵𝗮𝗻 𝗬𝗼𝗷𝗮𝗻𝗮 and 𝗨𝗣𝗜 are pivotal in expanding financial access. Modi emphasized that India’s digital banking innovations are setting global benchmarks. 3. 𝗘𝗺𝗽𝗼𝘄𝗲𝗿𝗶𝗻𝗴 𝗪𝗼𝗺𝗲𝗻: The Jan Dhan program has significantly contributed to women's financial empowerment, with over 29 crore bank accounts opened for women. 4. 𝗙𝘂𝘁𝘂𝗿𝗲 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻𝘀: Emerging technologies like 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝘄𝗶𝗻𝘀 and the 𝗢𝗽𝗲𝗻 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲 (𝗢𝗡𝗗𝗖) are paving the way for next-gen fintech solutions. The Prime Minister’s address was a powerful reminder of how fintech is not just about technology but also about creating impactful social change and driving global economic progress. 🌍 As we embrace these innovations, let's stay ahead by integrating these insights into our strategies. The future of fintech looks bright, and the best is yet to come! Narendra Modi Global Fintech Fest International Financial Services Centres Authority Reserve Bank of India (RBI) National Payments Corporation Of India (NPCI) Payments Council of India Fintech Convergence Council Ministry of Electronics and Information Technology Ministry of External Affairs, India #Fintech #DigitalTransformation #FinancialInclusion #JanDhanYojana #UPI #Innovation #GlobalFintechFest2024 #TechForGood #FutureOfFinance #IndiaFintech

🌟 UPI: Driving India's Digital Payments Revolution🌟 In October 2024, UPI achieved an extraordinary milestone, processing ₹23.49 Lakh Crores across 16.58 billion financial transactions, a remarkable 45% YoY growth compared to October 2023. With 632 banks connected to its platform, UPI continues to transform the way India transacts. This growth isn't just about numbers—it's a testament to India's journey toward a cashless economy. From individuals to businesses, UPI's convenience, security, and scalability have made digital payments an integral part of daily life. 🔗 As more people embrace this revolutionary technology, the future of payments in India looks brighter than ever. Kudos to all stakeholders for making this shift possible! 🚀 #DigitalIndia #Fintech #UPI #CashlessEconomy #Innovation #Growth Narendra Modi Nirmala Sitharaman

A recent report by Kearny India provides a comprehensive analysis of payment preferences across different generations in urban India. The findings reveal a significant shift towards UPI (Unified Payments Interface) over traditional cash transactions. Gen Z leads in UPI adoption, reflecting their comfort with digital technologies and mobile-based solutions. Their preference for UPI over cash indicates a trend towards convenience and instant transactions. Millennials also show a strong preference for UPI, with a higher percentage compared to cash. This generation values the efficiency and ease of use provided by digital payment methods. Even among Gen X, there is notable adoption of UPI. While more conservative with technology, the significant use of UPI indicates its widespread acceptance and the growing trust in digital payments. The larger "Others" category might include traditional methods like cards and net banking, indicating a transitional phase. The Kearny India report underscores a remarkable transformation in the payment habits of urban Indians. The shift towards UPI, cutting across generational lines, signifies the growing embrace of digital technology and its benefits—convenience, speed, and security. As UPI continues to evolve and integrate more features, its dominance in the payment landscape is likely to strengthen further. This trend is a positive indicator for the fintech sector, suggesting a fertile ground for innovation and growth in digital financial services. It also reflects a broader societal shift towards a more connected and efficient economic system. 🚀💳 #DigitalPayments #UPI #UrbanIndia #FinTech #GenerationalShift #KearnyIndia #CashlessEconomy #InnovationInPayments

🚀 India’s UPI Transactions Set to Hit 1 Billion Daily! 🚀 The Reserve Bank of India (RBI) anticipates a massive milestone for India’s digital payments landscape: 1 billion daily UPI transactions in the coming months! 📈 Unified Payments Interface (UPI) has transformed how India transacts, empowering millions with secure, cashless payments – from small shops to major businesses. 💸 But this forecast isn’t just about numbers; it reflects India’s thriving digital economy and innovation in financial services. 🔹 What’s Driving the Surge? 1. Financial Inclusion: Millions of new users are embracing UPI for its ease and accessibility. 2. Innovation in Fintech: From real-time settlements to cross-border UPI integrations, the ecosystem is expanding rapidly. 3. Supportive Policies: RBI’s proactive stance and government incentives are fostering an inclusive digital economy. Imagine a future where India is a globalleader in digital payments. 🌐 💬 What does this milestone mean for India’s economy? How will it impact businesses, big and small? Share your thoughts and let’s discuss the future of digital payments in India! #DigitalIndia #UPI #Fintech #RBI #DigitalPayments #FinancialInclusion #IndiaEconomy

The Indian FinTech industry is experiencing remarkable growth, currently valued at around $110 billion and projected to soar to $420 billion by 2029, with a compound annual growth rate of 31%. India holds the third position globally, boasting over 9,000 FinTech entities that contribute to 14% of the nation's startup funding. Notably, the FinTech adoption rate in India stands at 87%, significantly surpassing the global average of 67%. Key drivers of this growth include strong government support and the establishment of digital public infrastructures (DPIs) that facilitate seamless transactions and enhance financial inclusion. The National Payments Corporation of India (NPCI) aims for one billion UPI transactions daily in the near future.Technological advancements have transformed traditional financial services, enhancing efficiency and accessibility. The Unified Payments Interface (UPI) has been pivotal in revolutionizing digital payments.However, challenges remain, particularly concerning regulation and governance. Self-Regulatory Organizations (SROs) play a vital role in balancing innovation with regulation, while significant IT investments are essential for banks and FinTechs to navigate digitalization challenges.FinTechs also have the potential to bridge the credit gap for underserved populations, with only 14% of MSMEs and one in four farmers currently accessing formal credit. The rise in smartphone usage and internet access, along with government initiatives, is driving digital payment growth, expected to reach $10 trillion by 2026.Collaboration among stakeholders, including government and regulators, is crucial for strengthening India's global FinTech leadership. Public-private partnerships have been instrumental in developing digital infrastructure.Looking ahead, sustaining growth will require continued investment in technology and regulatory frameworks. The FinTech sector can significantly contribute to India's economic development, particularly in agriculture, MSMEs, and women's empowerment. #FinTech #India #Growth #Innovation #DigitalEconomy

An inspiring growth story in India. In a remarkable transformation, India's Unified Payments Interface (UPI) has become a global leader in real-time payments. As of 2023, India accounted for a staggering 46% of all global real-time payment transactions, with 129.3 billion transactions processed through UPI—more than the rest of the world's top ten real-time payments markets combined. UPI's success can be attributed to several key factors, including the Indian government's push for digital financial inclusion, the elimination of merchant discount rates, and widespread adoption of QR codes for easy transactions. The seamless integration of UPI across various financial institutions and fintech platforms has also been instrumental in its rapid adoption. This phenomenal rise of UPI not only underscores India's innovation in the payments landscape but also sets a benchmark for other countries aiming to enhance their real-time payments infrastructure. The impact of UPI extends beyond domestic borders, with cross-border payment capabilities now being established in countries like the UAE, France, and Malaysia. This transformation is a testament to the power of digital innovation and collaboration in driving financial inclusion and economic growth.

Much Ado about Nothing? Local Circles, a research agency recently conducted a survey between July 15 and September 20, the findings of which point to the fact that approximately 75% of current UPI users would stop using the service if they were charged for doing so. This sentiment coincides with the advent of a new mandate authorized in an National Payments Corporation Of India (NPCI) circular which states that, starting October 16, merchants would be charged between 0.5% and 1.2% by way of an interchange fee on all pre-authorized credit lines accessed via the interface. Is this the end for UPI? Will India's digital dreams dissolve in a tide of conscientious indignation? Or is this really a storm in a teacup? My opinion piece today in the Economic Times. #upi #npci #rbi #financialinclusion #digitalpayments #india #digitalpublicinfrastructure #economictimes #mdr #interchange #localcircles

India’s #digital payments landscape continues to break new ground, achieving a record #transaction value of ₹1,669 lakh crore in the first five months of FY2025, according to #data released by the Union Finance Ministry. This #milestone underscores the nation’s rapid transition towards a #cashless #economy, driven largely by #innovative #fintech solutions. A key highlight of this remarkable #growth is the surge in transactions through the Unified Payments Interface (UPI). #UPI has emerged as the backbone of India’s digital economy, enabling seamless, real-time transfers between individuals, #businesses, and #government services. Its user-friendly interface and interoperability across banks have made it the go-to #platform for millions, driving the majority of the country’s digital transactions. The exponential rise in digital payment adoption reflects not only consumer behavior shifts but also the growing acceptance of #fintech platforms by small #merchants and #enterprises. India’s commitment to a digital-first economy is visible in the sustained growth of these transactions, with public and private sector initiatives complementing each other to foster financial inclusion. This upward trend is more than just a reflection of #convenience—it represents a #fundamental shift in India’s payment #ecosystem, where cash is gradually taking a backseat. With continued innovation and #infrastructure improvements, the digital payments sector is set to accelerate further, contributing significantly to India’s #economic #modernization. The impressive #performance of digital payments, led by UPI, is reshaping the future of financial services. As #India positions itself at the forefront of the global fintech #revolution, the next phase of growth will likely include deeper penetration into #rural markets, enhanced financial #literacy, and increased integration of #AIpowered payment solutions. “This surge of digital payments signals the shift towards a more inclusive, cashless economy, making it easier for individuals and businesses to transact with confidence. As fintech players, it’s our responsibility to capitalize on this momentum by building more secure, user-friendly platforms and expanding financial access to underserved regions. I believe India’s fintech sector is on the verge of setting global benchmarks for digital payments." Sachin Salunkhe Chairman, Blackhat Syndicus.

India's potential export may shift from IT or SaaS to the $100 billion fintech-driven India Stack, despite challenges faced by fintech players like PayTm losing 20,000 Cr in market cap in 2 weeks. While India's banks, including the $100 billion SBI, are criticized for slow innovation, beneath the surface lies a robust infrastructure poised for global impact. If we dive in deeper : The genesis of this transformation dates back to the Kargil War in '99, emphasizing the need for IDs, leading to the creation of MNICs and later NAUID. By 2009, UIDAI emerged, gaining momentum in 2012 with 50 Cr Aadhar enrollments, reaching 1 billion Indians by 2016. This revolutionary identity initiative set the stage for a generational infrastructure. The momentum continued as the RBI strategically unlocked India's payment ecosystem in 2017, leading to the quiet birth of UPI in 2018. UPI's exponential growth, reaching 240 million transactions by 2018, ignited a new era. The pandemic in 2020 stress-tested India Stack, facilitating $24 billion in Aadhar-based transfers. Light years ahead of US, India’s UPI was a huge hit. Reaching $1Tn by Feb 2023, UPI was exported to 6 countries. MF Central was started to organize mutual funds. AAs grew exponentially to 23M accounts by mid-2023. By end 2023, ONDC reached 20L orders. India Stack or Digital Payment Infra had become massive, led by trailblazing UPI. India’s DPI was ready to be exported globally India’s Stack could make us a Global Fintech superpower #Fintech #paytmcrisis