INDIA - A CASHLESS ECONOMYTHE NPCI UPI LAUNCH WILL SPARK A FINTECH REVOLUTION IN INDIA
ARVI KRISHNASWAMY (@twitortat)M T RAJAN (@mtrajan)
What is Indias current population?
How many mobile phone users does India have?
69%900 Million Users of a total of 1310 Million
How many Indian consumers have bank accounts?
53%700 Million Users of a total of 1310 Million
How many Indian consumers have credit cards?
1.6%21 Million Users of a total of 1310 Million
How many Indian consumers electronic wallets?
7.6%100 Million Users of a total of 1310 Million
Why does a cashless economy matter?
What is UPI?United Payments Interface Service
launched by National Payments Corporation of India
National Payments Corporation of India is the umbrella organization for all retail payments systems in India. Setup via RBI and IBA.
Launched RuPay card.
Non-profit community organization.
Nandan Nilekani is an advisor.
UPI is open source
UPI is mobile first
UPI is interoperable
UPI is instantaneous
UPI is secure
UPI is cheap
UPI ROLLOUT IN 2016 The next billion in a cashless economy.
January 2015NPCI published unified payment interface platform specification
21 Banks join NPCI platform*
June 2016New Payment Bank licences awarded*
July 2016Launch of payment apps with Aadhar integration*
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
* Current projections
UPI - Diving Deeper
Push and Pull
Authentication and Authorization
Leveraging the platform - recurring payments
UPI - What Changes?
No need for retail payments infrastructure. No POS systems, no smartphone readers
No need for your friend to have the same wallet. Wallets lose their network effects.
No PII needs to be shared for monetary transactions. Sub 10K phones have biometric.
More benefits of using Aadhar. Payments is expected to be the Aadhar killer app.
No need for cash payment via COD. Immediate transfer upon delivery of goods.
No need for peer to peer transfer walled gardens. App is decoupled from payments.
What else may change? What may not change?
Why do you think Intuit should care?
UPI Payments Architecture
UPI API Specification
Forbes article - Digital consent and Loans
YourStory article - UPI and Wallets