UPI Autopay Launch: India A Hotbed Of Payments Innovation, Nandan Nilekani Says
The next step for India’s fintech industry should be to apply innovation similar to UPI Autopay to lending, Nandan Nilekani says.
India’s innovations in payments infrastructure and technology is helping improve financial inclusion and accessibility, Infosys Chairman Nandan Nilekani said at the launch of UPI AutoPay on Wednesday.
“To give you a sense of the scale and importance of this in the recent crisis, when many migrants went back home and the government put in money in Jan Dhan accounts, there were over 400 million transactions in May and June,” Nilekani said during the fully virtual Global Fintech Festival. “This has shown the kind of innovation that have been there.”
Nilekani said that the next step for India’s fintech industry should be to apply similar innovation to lending. “Today it’s possible to think of an end-to-end credit cycle that’s entirely digital—from loan underwriting to disbursement and repayment,” he said. This digitisation will help bring down costs of loans, he said.
The National Payments Corporation of India has added an auto-pay feature to Unified Payments Interface, allowing recurring payments via platforms build on UPI.
UPI AutoPay will allow customers to set up electronic payment mandates for multiple use cases such as subscription services, utilities, insurance premium payments, loan installments and even mutual fund investments.
Watch Nilekani's full address at the Global Fintech Festival 2020 here: