United Payment Interface or UPI payments ecosystem is aiming for 2 billion transactions a day by 2030 with the number of customers accessing credit growing ten-fold and cross-border processes in place for half of the world’s top 30 countries, Dilip Asbe, CEO, National Payments Corporation of India (NPCI) said on Tuesday. He also sees the emergence of asset tokenization taking place.
“I think 10x growth on the users on the credit side, and it is not very ambitious,” Asbe said in conversation with Rajan Anandan, Partner, Peak XV at the Global Fintech Festival.
He added that a couple of lenders including HDFC Bank and ICICI Bank had already initiated a completely digital journey for the customer and others were expected to do so soon. “With the sachetisation of credit and a fully digital journey, the volumes could be significantly bigger.
The costs would come down sharply, both in terms of acquiring the customer and the transaction costs. Currently, the under-writing costs, especially when credit cards are used, are high, making it difficult to scale up volumes. “Underwriting costs will be minimal,” he said.
NPCI expects that customers would be to access real-time credit from, say, a showroom, for a specific purchase and would not need a sanction in advance.
Also, opportunities for users to transact via UPI would increase with the technology being made possible for feature phones. Moreover, more use cases would also be found. As such volumes of 100 bn transactions a month, from the current levels of 10 bn transactions month, could soon become a reality.
On cross-border UPI transactions, Asbe said after Singapore, UAE,Nepal and Bhutan, NPCI was in the plumbing stage to initiate transactions with other countries. In the case of Singapore, he said efforts were on to increase the limit from $1000 to $10,000.