Indian Fintechs Get Governmental Support Against International Giants
Indian Fintechs: India is taking some serious steps to ensure fintech players don’t overstep their boundaries. In a time when technological giants like Google and Facebook are trying to devour every other smaller player in the market, India is going to cap the percentage of transactions that a single player can keep in their kitty.
A capping of 30percent per financial player in the market has been decided upon by the National Payments Corporation of India (NPCI). The NPCI has been established as a coalition of India’s largest retail banks to build and oversee the fintech infrastructure.
It seems that India is taking its ‘Made In India’ spirit very seriously when it has also set a decree that every company also has to use India’s open payments platform, guaranteeing interoperability so money can be transferred between any of more than 100 traditional banks and digital services like Google Pay — all without fees.
India does not want to repeat a story like that of China where the duopoly of players like Tencent and Ant started shifting its focus to business of traditional banking sector, disrupting it terribly. By 2023, additional financial services will rule the roost and India will see the digital payment sector to grow to $1 trillion. Facebook has gradually crept into the Indian market. It has already tied up with RelianceJio and has also ensured they have the Unified Payment Interface built in for easy access into the India digital user base.
After the pandemic, India’s digital user base has only multiplied. By 2024, the number of digital payment transactions is projected to grow 15-fold to about a billion a day, according to Dilip Asbe, Chief Executive Officer at the National Payments Corporation of India.
India is determined to protect its own and ensure the digital transaction infrastructure can remain zero fee transactions. It has already mandated companies to use the UPI platform so that payments can be sent among all services, including those from Facebook, Amazon, Walmart Inc., Paytm and any new upstart.