“India is in a strong position to become the global leader in fintech innovation, with a thriving ecosystem of startups and established companies driving innovative financial solutions. A robust tech stack, combined with the Jan Dhan Yojana and the surge of UPI, has opened doors to endless opportunities to spur innovative offerings and services in Fintech.
Here are a few trends that can drive this progress in 2023:
- Offline digital payments gain traction:
The introduction of offline digital payments such as UPI 123pay will increase person-to-merchant (P2M) and peer-to-peer (P2P) transactions via payment apps. This will exponentially increase the financial awareness for users even from the remotest regions, making them a new customer segment for businesses.
- Increase in cross-border payments:
Homegrown payment solutions will gain further acceptance in foreign markets, increasing cross-border transactions. NPCI’s efforts in expanding UPI in markets such as Europe, Belgium, Netherlands, Luxembourg, and Switzerland will act as a growth catalyst. Recent initiatives, such as allowing Non-Resident Indians (NRIs) to directly make payments for their bills using Bharat Bill Pay System (BBPS), will accelerate this process.
- Increased adoption of BNPL:
In 2023, we will witness an increased collaboration between banks, NBFCs, and payment networks, giving access to credit to a largely underserved market and creating a new customer base. Segments offering BNPL will go beyond electronics, mobiles, and groceries, extending to essentials, healthcare, online education, insurance, and travel.
Banking as a Service (BaaS) has emerged to be a powerful avenue to boost the reach of financial services. We are witnessing a rising focus on convenient banking and the utilization of tech-led innovation. Considering the efforts will increase in 2023, we will undoubtedly move closer to the aspiration of hassle-free bank account shifting, just like changing mobile phone service providers. It goes without saying that we are entering an exciting phase wherein fintech and digital payments will become force multipliers in India’s financial inclusion endeavour.”
pic source: Adfactors PR