Prime Minister Narendra Modi today (December 3rd, 2021) said that the initiatives in the fintech space in India should now turn into a “fintech revolution” by financially empowering every citizen of the country.
Speaking at the ‘Infinity Forum’, a financial technology event of the International Financial Services Centres Authority (IFSCA), he said that financial inclusion is the driver of the fintech revolution. He noted that fintech is resting on four pillars – income, investments, insurance, and institutional – and in India all these dimensions have been worked upon.
“The fintech industry in India is innovating to enhance access to finance and the formal credit system to every person in the country. Now it is time to convert these fintech initiatives into a fintech revolution. A revolution that helps to achieve financial empowerment of every single citizen of the country.”
Noting that the fintech industry has witnessed a massive growth with mass acceptance among Indians, he said that the players in the sector should ensure that interests of the people are secured.
“Fintech innovation will be incomplete without fintech security innovation,” he said.
Addressing the global audience, the Prime Minister also suggested India’s fintech expertise to spread over other countries, saying that the digital public infrastructure solutions of India can improve the lives of people around the world.
“Tools like UPI and RuPay provide an unparalleled opportunity to every country. An opportunity to provide a low cost and reliable ‘real time payment system’ as well as a ‘domestic card scheme’ and ‘fund remittance system’,”
Outlining the progress in the sector, Modi said that 690 Mn RuPay cards have been issued so far. RuPay cards clocked 1.3 Bn transactions last year.
“UPI processed around 4.2 Bn transactions in just last month,” he added.
In November this year UPI transactions had crossed the $100 Bn value mark for the first time.
The contactless digital payments such as mobile wallets and UPI continue to gain market momentum even after the conditions brought by the Covid-19 pandemic begin to subside.
The digital payments market is expected to grow to INR 7,092 Tn in India by 2025. Further, the current 160 Mn unique mobile payment users are likely to multiply by 5 times to reach nearly 800 Mn by 2025.
India’s is one of the fastest-growing compared to the rest of the world. The country has the highest fintech adoption rate at 87% against a global average of 64%.
Fintech Players Going Public
The startup ecosystem in the country has matured over the years and several companies including fintech startups are now eyeing the public markets.
Paytm’s rival MobiKwik, which has received SEBI’s nod for its INR 1,900 Cr IPO, is yet to announce its IPO dates.