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Architecting Platforms for

innovation

@pramodkvarma

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Product 1

Raw Material 1 Product 2

Raw Material 2

Container

Shipping Containers in

mid 1900s

Rail

Truck

Ship Air

� Allows innovation on all sides� Amplifies impact of ecosystem

players

Suppliers

Transportation Networks

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Email

Web Audio / Video

Telephony

AppsCloud

TCP/IP

TCP/IP Packet Switching &

Layered Internet Architecture

LAN

WIFI

Switches / Routers Satellite

WAN

� Allows layering of innovation on both sides

Applications / protocols

Network Technologies

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125 Years of Telecom

Graham Bell to Now

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Architecture Patterns

● Minimal

● Standardized

● Unbundled

● Generalized

● Layerable

● Ecosystem Driven

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Architecture Patterns

TCP/IP GPS

Internet Smartphone

Maps Payment

● Minimal

● Standardized

● Unbundled

● Generalized

● Layerable

● Ecosystem Driven

IDENTITY as an innovation platform

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Today identity is embedded within vertical solutions and often conflated with entitlement

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Name DoB/Age Gender Address Mobile/Email

1234 5678 9012

UniqueLifetime

Minimal, Standardized, Unbundled, Generalized, Layerable via APIs, Ecosystem Driven, Data Driven

Source: http://www.uidai.gov.in

1 Billion in 5½ Years

Source: http://www.uidai.gov.in 10

950 M

600 M

300 M

100 M

50 M

1085 M

A Ubiquitous Digital Identity Infrastructure for a digital desh.

The Aadhaar system can

authenticate 100 M transactions per day, in real time!

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UIDAI

Registrars

Enrolment Agencies

OperatorsTraining Agencies

Certification Agency

Device providers

Printers

Contact Centers

200 people

6 Offices

2 Data centers

85 Registrars

20 Biometric Device Providers

410 Enrolment Agencies

40000 Stations

200,000 Operators

7500 cr Cost so far

30,000 cr Savings so far

Source: Rough data obtained from papers and conversations with UIDAI

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Aadhaar is like GPS It's minimal and zero-knowledge system

All it does is confirm identity

All the innovations happen outside!

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ANY BANK ACCOUNTNPCI

Aadhaar Payment

Bridge

380 Million

Mobility

Send money to

an Aadhaar Number

Aadhaar based banking using biometric auth

On-us and off-us transactions across banks

RBI approved Aadhaar enabled Micro-ATM specSource: http://www.npci.org.in

Smartphones with integrated Aadhaar compliant Iris recognition available for

commercial use!

Biometric smart phones enable 1-click 2-factor authentication14

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Aadhaar Hourglass Architecture

� Identity as a utility, an enabler� Allows innovation on all sides� Amplifies ecosystem players� Network effects

Biometric Sensors

Phones Tablets

Attendance Device

Micro ATM

Healthcare Apps

SIMFinance

Apps

UPIDigital Locker

APB AEPSDBT

eSign

Aadhaar

Applications / Systems

Devices

PAYMENT as an innovation platform

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Today payment systems are siloed and non-interoperable making usage costly and complex

Validation & Assurance

Virtual Payment Address

Minimal Issuer/Acquirer Cost

Ubiquitous - Bank accounts

Easy Immediate Payments

Timely Notification

Features

Push & Pull Payments

@Every one with a bank account can send money to any bank account in India!

Real-time postingFunds are not locked!

Immediate notifications of the payment made

Payments can be initiated by payer or payee.

Real-time validation of the account and balance

No need to disclose account information.Allows account portability, enhances privacy.

Smartphone replaces card and PoS machine!!

18Source: http://www.npci.org.in

Payment Markup Language

A structured markup having a unified representation of payment instruction

● Amount and transaction context (which utility bill or which interest payment or which insurance premium or which SIP, etc.)

● Financial address (Mobile, Aadhaar, bank account, card, virtual address, etc.)

● Pluggable authentication (mobile, PIN, biometric, digital signature, etc.)

● Transaction context (truck passing the toll gate, invoice being raised, utility bill being raised etc., or by a rule/mandate – SIP, EMI etc.)

● Method (push/PAY or pull/COLLECT)

● Channel (Smartphone over data, feature phone over USSD, phone over IVR)

19Source: http://www.npci.org.in

● Open interoperable API ● 1-click 2-FA experience● 4-party model allowing unbundling of application from bank● Virtual Payment Addresses hide bank details and allows features like one time

VPA, amount limited VPA, revocation, etc.● Merchant can use smartphone/featurephone to eliminate PoS● e-Mandate, e-Cheque and biometric authentication are coming on UPI 2.0● Markup allowing pluggability for addresses, credentials, and channels

State of the Art architecture

20Source: http://www.npci.org.in

INDIA STACK Open APIs as Public Infrastructure

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PRESENCE-LESS LAYER Aadhaar AuthenticationUnique digital biometric identity

with open access of nearly a Billion users

CONSENT LAYER Open Personal Data StoreProvides a modern privacy data

sharing framework

PAPERLESS LAYERAadhaar e-KYC,

E-sign, Digital LockerRapidly growing base of paperless systems with billions of artifacts

CASHLESS LAYER IMPS, AEPS, APB, and UPIGame changing electronic payment systems and transition to cashless

economy

COMMERCE(GSTn)

CREDIT(RBI)

INVESTMENTS(SEBI)

OTHERS

I N D

I A

S

T A

C K

SKILLS

JAM Jan Dhan, Aadhaar, Mobile 22

Source: UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials

3 BnAuthentications of 500M unique ids

1.1 BnEnrolments In 6 years since launch

340 MneKYC in 3 years75 Mn unique ids

380 MnAPB Accounts Linked1.2 B Transactions worth 4.5 B USD in 3 years

>2.5 Mne-Sign in 15 months>0.8 Mn unique ids

2.9 MnDigilocker users & 15 months

4.8 MnUploaded Docs

10M+UPI VPA in Just in 4 Months~1000 cr per month!

252 MnJan Dhan bank accounts

350 MnSmartphones

1060 MnPhone numbers

Jan Dhan Aadhaar Mobile

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Source: UIDAI Website, Conversations with NPCI, eMudhra, Deity officials

India Stack Ecosystem

25 ASA 293 AUAAadhaar Authentication

23 KSA 216 KUAAadhaar eKYC

4 eSign ESPs

1 Digital Locker Provider20 Issuers, 500 million docs

830 Banks (APB)

127 Banks (AEPS)

26 Banks (UPI)

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Bharat Bill Payment System

API based platform allowing innovation on delivery models

Ecosystem incentives aligned for rapid adoption

Multi-channel (web, mobile, offline, etc) with multi payment methods (card, cash, UPI, etc)

Unbundling bills, access, payments and rebundling for any-to-any

Bills can go into Digital Locker which can then be shared with consent for a use (e.g. loan)

~1 BillionBills per month

~250 Billion INR

monthly payments

25Source: Public data and NPCI website

Electronic Toll Collection

Interoperable RFID tag and API specifications

Works across 350+ toll booths on national highways

All vehicle classes, ~60 Million, supported

4 Large banks ready to be issuers and acquirers

Built as an Open API platform. In future, can be used for dynamic pricing, congestion pricing, parking apps, etc.

It can also be used to auto link transport manifests for ease cross border movements.

26Source: NPCI website and discussions with NPCI

GSTN Platform

Goods & Services Tax Network (GSTN)

API based platform

GSPs can provide basic and value-added services to taxpayers

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GSTN will process

5 Billion invoices a month

across 70+ Lakhs businesses!

Source: GSTN website

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Disruptive innovation comes from

unbundling, layering, and rebundling!

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Thank You!

@pramodkvarma