india - a cashless economy (npci/upi)

INDIA - A CASHLESS ECONOMYTHE NPCI UPI LAUNCH WILL SPARK A FINTECH REVOLUTION IN INDIA

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

INTUITPM-XD

What is India’s 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.

http://www.npci.org.in/aboutus.aspx

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