Technology for MSMEs: The former chief architect of Aadhaar and Stack, Pramod Varma has expressed his faith in the Open Network for Digital Commerce (ONDC), calling it to bring in the next revolution for e-commerce, even more significant than Unified Payment Interface (UPI) brought in for digital payments in India.
“The effect of open networks is so large that eventually, it allows everyone worldwide to participate and innovate. The ONDC is gearing up to bring financial products to the network, which is expected to happen in the next few months. The UPI was a device-agnostic, authentication-agnostic, and currency-agnostic network that revolutionised digital banking and digital transactions in the country.” said Pramod Varma, former architect of Aadhar and Stack, while speaking at the session ‘India’s path to digitalisation’ organised by FICCI Ladies Organisation (FLO), the apex body of business women in the country.
Comparing open networks to platform-based service providers, Varma stated that digital open networking can eliminate the intermediaries between the consumer and the service provider, while platforms act as intermediaries themselves, adding up the cost of their service.
“Use of ONDC can be many including in areas like education, transportation, e-commerce and healthcare would open up immense opportunities and convenience. ONDC will ensure trust and compliance. Open networks would reduce the cost of doing business and expand markets,” he said.
Also read: How ONDC and OCEN can push digitisation drive among MSMEs
Varma stated the previous achievements, like access to the banking system from 17 per cent of the population in 2018, to over 90 per cent at the present, and similarly having the largest biometric-based digital identity, which helped in the financial inclusion of 90 per cent population, including 60 per cent women beneficiaries.
“Digital empowerment can be a powerful avenue for women’s inclusion in the digital economy with new business opportunities, efficiency gains and better access to markets and global value chains. It will be a critical factor in promoting social inclusion and economic development. By giving women access to information and resources, digital empowerment can help to level the playing field and create opportunities for everyone.” said Sudha Shivkumar, National President, of FICCI Ladies Organisation (FLO) while speaking on the occasion.
ONDC is a not-for-profit organisation established by the Department of Promotion of Industry and Internal Trade (DPIIT). ONDC provides a unified platform that connects various stakeholders in the digital commerce value chain, including manufacturers, suppliers, logistics providers, and consumers. In the near future, with this intervention, MSMEs can set up their digital stores and reach a wider customer base.
The platform offers features like secure payments, logistics support, and customer analytics, enabling businesses to deliver a seamless and personalized shopping experience. Moreover, ONDC facilitates collaboration between MSMEs, fostering partnerships and driving innovation across sectors.