If we look at the United Payments Interface (UPI) numbers, nearly 8 billion transactions were processed, as of January 2023, which is said to be the highest ever since the UPI was launched in 2016. According to National Payments Corporation of India (NPCI), the highest number of transactions were recorded in March 2023 to the tune of 8.3 billion.
The account-to-account (A2A) payments have grown to $ 12 billion, up 53 percent from 2021 to 2022 which results in a rapid decline, from 71 percent of point of sale (PoS) transaction value in 2019 to just 27 percent in 2022, according to FIS Global Payments Report 2023. However, if we look at the United Payments Interface (UPI) numbers, nearly 8 billion transactions were processed, as of January 2023, which is said to be the highest ever since the UPI was launched in 2016.
According to National Payments Corporation of India (NPCI), the highest number of transactions were recorded in March 2023 to the tune of 8.3 billion.
The current payment system
The latest development of the Indian Payment Ecosystem evolves around direct account-to-account transfers.
Kishan Sundar, SVP – Digital Practice at Maveric Systems Limited said that these have given both buyer and seller the power of instant payment and settlements in a way. However, dependencies on PoS have been reduced.
“To become up in the curve, POS vendors have made promising innovations in integrating UPI payments, billing systems, etc., with their terminals. Also, adding credit cards as the payment option in UPI transactions helps broaden the options,” Sundar said.
On UPI payments, he said that it is without a doubt one of the most significant products developed in India, which has been going global recently. Ten countries, including the US, the UK, Singapore, UAE, and Saudi Arabia, are adopting UPI payments. These will help faster and smoother trade collaboration for Indian customers and manufacturers with those countries,
Another Indian innovation that should be worth mentioning here is eRupee or Digital Rupee, which is RBI-backed Digital Currency with potential utilisation for cross-border payments with various countries in the future.
“These initiatives have an enormous scope for banks/ FIs to open up various new products and services in cross-border payments and trades,” Sundar said.
Financial data and management
Big financial data set refers to large, diverse (structured and unstructured), and complex data from different third-party sources.
According to Sundar, while integrating them with the mainstream application of banks/ financial institutions, data security always comes first. Cyber security, cloud security, and data loss prevention would be most important on this security front.
“The second aspect is properly cleansing the unstructured data set without losing its essence. Thirdly, data analytics should be driven by the business objective and strategies of banks/FIs. They need to understand their focus areas and align their entire strategy,” he said.
Lastly, inferences from analytics should be the guiding principles for up-selling and cross-selling products and services – these should help banks/FIs to place the right product at the right time and place for customers.
About the Author
As the leader of Maveric’s Digital Business unit, Kishan Sundar brings unrivaled organizational leadership and business acumen to champion significant initiatives that include digital design thinking and strategic customer experience. His present mandate of forging new paths in digital banking transformations is essential to Maveric’s aspiration of becoming one of the top three Bank Tech companies by 2025.
Originally Published in CNBC TV 18