How UPI is Revolutionizing Credit Growth in India: Insights from Amazon Pay India CEO on the Future of Digital Payments
Here's a refreshed version of the interview content with Vikas Bansal, CEO of Amazon Pay India, and Mayank Jain, Director of Credit and Lending:
Indian Digital Payment Ecosystem: The Future of UPI and ULI
Following the remarkable success of the Unified Payments Interface (UPI), the Reserve Bank of India (RBI) has announced the launch of the Unified Lending Interface (ULI). At the Global Fintech Fest (GFF), the National Payments Corporation of India (NPCI) introduced UPI Circle. In an exclusive interview with Outlook Business, Vikas Bansal, CEO of Amazon Pay India, and Mayank Jain, Director of Credit and Lending, shared insights into how these innovations are shaping India’s fintech and digital payment landscape.
Q: With the recent introduction of UPI Circle by NPCI, when can we expect Amazon Pay to integrate this feature, and will there be any infrastructural changes required?
Vikas Bansal: UPI Circle is a groundbreaking advancement in the UPI ecosystem. We are actively working on its integration and plan to initially roll it out within a closed user group before a broader market introduction. Although it’s challenging to pinpoint an exact timeline, we’re currently in the production phase. The integration will be smooth, but we are constantly evaluating and adapting our infrastructure to ensure it meets the new requirements effectively.
Q: Amazon Pay has now reached 100 million customers on its UPI platform. What strategies have you employed to succeed in a market dominated by a few major players?
Vikas Bansal: Our long-term strategy revolves around enhancing the UPI payment experience for our customers. By prioritizing customer needs and continuously innovating, we aim to stay relevant and competitive. We focus on providing solutions like credit on UPI, RuPay credit, offline payments, and delegate payments. These innovations are crucial in driving UPI’s growth. Our customer-centric approach is the cornerstone of our strategy, guiding how we evolve and expand our offerings.
Q: RBI Governor Shaktikanta Das has confirmed the creation of a self-regulatory organization (SRO) for fintechs in India. How do you anticipate this impacting the Indian fintech ecosystem?
Vikas Bansal: The fintech landscape in India is incredibly dynamic. An SRO can significantly impact the sector by setting industry standards, ensuring compliance, and fostering regular dialogue with regulators. With thousands of fintechs emerging, the SRO will help streamline regulation, support self-regulation, and facilitate better industry practices. This collaboration will address industry challenges and support sustainable growth.
Q: Is Amazon Pay considering the launch of a standalone app in India?
Vikas Bansal: Our primary focus is on meeting customer needs. If there is a strong demand for a standalone app, we will evaluate that possibility. At this stage, any move towards a standalone app is speculative, and we need to fully assess customer requirements before making a decision.
Q: UPI has significantly transformed payments. How do you think ULI could impact the credit market?
Mayank Jain: Much like UPI revolutionized payments, ULI is set to drive credit growth by leveraging digital footprints to capture customer payment behaviors. ULI will be particularly transformative for the MSME sector, which still relies heavily on traditional loan evaluation methods despite digital advancements. It will streamline credit access and lay the groundwork for digitizing secured credit, such as land records and asset details, which remains underdeveloped.
Q: Given the RBI's recent concerns about rising credit levels on fintech platforms, what is your perspective on the timing of ULI’s introduction?
Mayank Jain: While the RBI has expressed concerns about rising credit levels, their support for ULI indicates a balanced approach to regulation. Recent regulatory measures, like the Key Fact Statement (KFS) and digital lending guidelines, have improved transparency in lending. Increased transparency fosters market confidence, which aligns with our customer-centric approach. The RBI’s careful regulation aims to expand credit access while preventing overleveraging, ensuring responsible growth in the credit market.
