Over the last few years, India's fintech sector has experienced a meteoric rise, emerging as a key player in the global financial landscape. The country now processes over 18,737 crore digital payment transactions annually, with UPI alone accounting for more than 75% of retail digital payments. As the fintech market continues to thrive, India’s digital payments are projected to reach a value of $10 trillion by 2026.
This year, at the Global Fintech Fest (GFF) 2024, held from August 28-30 at the Jio World Convention Centre in Mumbai, Mastercard took center stage in showcasing the transformative potential of emerging technologies in shaping the future of finance in the country.
Themed “Blueprint for the Next Decade of Finance: Responsible AI | Inclusive | Resilient,” the event included a keynote address by Prime Minister Narendra Modi, who observed that in addition to being the largest, India’s fintech ecosystem is also one of the most inclusive in the world.
India’s growing prominence as a global fintech hub provided the perfect backdrop for Mastercard to showcase its latest AI-driven innovations and product launches and reaffirm its commitment to building a more secure, efficient, and inclusive payments ecosystem. These advancements, from cutting-edge security solutions to inclusive financial platforms, set the tone for Mastercard’s broader vision of driving digital transformation in India.
India Leading the Way in Digital Payments
Gautam Aggarwal, Division President for South Asia at Mastercard, emphasized India’s pivotal role as a leader in digital payment innovation. He noted that the country’s diverse market is embracing a wide array of payment methods, from cash to UPI to QR technologies. Mastercard has expanded its focus beyond cards to include soundbox and QR code support, making payments more seamless and embedded into everyday actions.
"The consumer of the future will look for interlinked payment solutions where digital payments become an afterthought, seamlessly integrated into daily life," said Aggarwal. Given this preference, he noted that wearables represent the next frontier in payment technology, offering convenience that fits into modern consumers’ lifestyles.
Revolutionizing Payments with Passkeys
One of the key announcements at the event was Mastercard’s global launch of payment passkeys in India, a groundbreaking initiative aimed at enhancing security in digital payments. This innovation replaces traditional one-time password with biometric data, ensuring secure transactions in a tokenized form that safeguards user data from third-party exposure.
John Lambert, Chief Product Officer at Mastercard, explained the significance of passkeys: "What payment passkeys really do is bring security and safety by eliminating passwords and using biometric data to secure payments. In an age when scammers are becoming more sophisticated, it's crucial that we build systems from the ground up that are scam-proof and give consumers the convenience and confidence they deserve."
Empowering Underserved Communities
Beyond innovation in payment technology, Mastercard is deeply committed to financial inclusion and digital literacy. Vikas Varma, Chief Operating Officer for South Asia at Mastercard, outlined Mastercard’s efforts to empower underserved communities, particularly through platforms like Community Pass, which leverages a shared, interoperable digital infrastructure that facilitates transactions for marginalized individuals and communities even in the most remote areas with limited connectivity and energy access.
Varma emphasized Mastercard’s goal of digitally empowering 1 billion new consumers and 50 million businesses across sectors globally – including agriculture, healthcare, education, micro-commerce and humanitarian aid. Through initiatives like the Strive India program, Mastercard is driving digital literacy and financial empowerment across sectors, ensuring that even the most underserved communities can benefit from the digital economy.
"Whether it’s farmers or small women-led businesses, the mantra of ‘get paid, get capital, and get digital’ cuts across all ecosystems," said Varma, highlighting the critical role of technology in transforming these communities.
Innovating for Financial Inclusion
Rajnish Kumar, Chairman, Mastercard India, took the conversation further, explaining how ‘phygital’ touchpoints – a blend of physical and digital solutions – are enabling farmers to access services even in areas with limited mobile connectivity. He pointed to Mastercard's work in the agricultural sector, where initiatives like Farm Pass, a part of Community Pass digital infrastructure, are providing crucial support to farmers, particularly those in remote areas. A platform that digitizes marketplaces, payments, and workflows, Farm Pass brings together various agri-sector stakeholders in one digital marketplace, amplifying the collective positive impact on farming communities.
"With Farm Pass, farmers can access services through physical touchpoints, enabling them to participate in the digital economy, even in areas where connectivity is limited," Kumar explained.
A Blueprint for the Future
Capitalizing on its far-reaching network and decades-long presence in India, Mastercard is helping to build a robust innovation ecosystem that can be leveraged globally. The company's initiatives at GFF 2024 demonstrate its continued commitment to driving digital transformation, financial inclusion, and secure, accessible payment systems for all. As Mastercard shapes India's fintech future, its innovations in AI, digital literacy, and financial empowerment stand to revolutionize the payments landscape – in India and beyond.
Moneycontrol Journalists are not involved in creation of this article.
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