 "Dilip Asbe, managing director and chief executive officer (MD&CEO) of the National Payments Corporation of India (NPCI)")
Asbe further added: “We have launched the credit on UPI and in a couple of weeks, we will release the commercials. I think the small ticket and high-frequency credit is going to be important to reach that goal.”
India’s Unified Payments Interface (UPI) has the potential to scale to 100 billion transactions in the next 10 to 15 years. But this will come on the back of growth in credit.
“We are looking at 100 billion transactions as a possibility for India on UPI in the next 10-15 years. We have done the maths earlier too… and it is a fairly achievable number. And credit is going to be the backbone of this growth,” said Dilip Asbe, chief executive officer of the National Payments Corporation of India (NPCI).
He was responding to a question posed by Kunal Shah, serial entrepreneur and founder of Cred, at the Global Fintech Fest on what will bring the next millions to the UPI ecosystem.
Asbe further added: “We have launched the credit on UPI and in a couple of weeks, we will release the commercials. I think the small ticket and high-frequency credit is going to be important to reach that goal.”
He was also of the opinion that the role of fintech will be crucial in driving this usage. “We are fairly convinced that recurring payments, mandate QRs, and EMI QRs will drive that usage… today it’s a tedious process,” he added.
According to details from UPI, the transaction volume for the month of June was 13.89 billion. In the month of May, it was 14.04 billion.
But Amrish Rau, founder and CEO of Pine Labs, was of the opinion that for credit to grow, it depends on three factors that have the maximum impact. “These are speed of credit delivery, cost of credit, and trust in the credit. We have started on this journey, but I think the Indian user has not yet adopted credit for personal and economic growth,” added Rau during the panel discussion on the future of fintech.
Shailendra Singh of Peak XV Partners said that while he believes in credit being a strong balancing force, it has to be done responsibly.
First Published: Aug 28 2024 | 4:56 PM IST
