India - A Cashless Economy (NPCI/UPI)

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Text of India - A Cashless Economy (NPCI/UPI)


    ARVI KRISHNASWAMY (@twitortat)M T RAJAN (@mtrajan)


  • What is Indias current population?

  • 1.3 Billion

  • 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 IMPS/MMID.

    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

    April 2016

    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

    Virtual Addresses

    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?

  • Additional Reading

    About NPCI

    UPI Payments Architecture

    UPI API Specification

    Forbes article - Digital consent and Loans

    YourStory article - UPI and Wallets