Witnessing the journey from X to 10X is going to be more exciting than the journey till now' Says NPCI Chief Dilip Asbe at Razorpay FTX '24

Today, India is the fastest-growing Fintech market in the world, exceeding the combined digital transactions recorded in the US, UK, Germany & France!  (India, currently, is one of the fastest-growing Fintech markets in the world, exceeding the combined digital transactions recorded in the US, UK, Germany & France.) According to the Finance Ministry’s latest monthly economic review, India is set to become the world’s third largest economy with a GDP of $7 trillion by 2030. 

While Indin businesses saw rampant growth, Razorpay, India’s only Full-Stack financial solutions company, announced that the company achieved an annualised Total Payment Volume (TPV) of $150 billion. This announcement was made at its recent annual event, FTX '24. 

With this achievement, Razorpay gains a majority market share, making it India’s market leader in the business digital payments industry.

The FTX event brought together 30+ thought-provoking speakers and saw the participation of over 2,000 Founders, CFOs, Product Managers, and executives from the banking fraternity across India. It was also virtually attended by 20,000+ fintech enthusiasts from across the globe. 

At the event, Razorpay unveiled a game-changing suite for businesses, introducing four India-first innovations: Payment Gateway 3.0, Engage, Dynamic QR (DQR) device, and AI assistant RAY. These products were launched to make the entire money flow in any organisation simple, scalable, and secure. 

Further amplifying the event's significance, FTX  hosted a captivating fireside chat featuring Dilip Asbe, MD & CEO of the National Payments Corporation of India (NPCI), and Harshil Mathur, Co-founder & CEO of Razorpay. 

Dilip Asbe, a prominent figure in the Indian payments ecosystem, painted a vivid picture of the immense opportunities waiting to be seized. He highlighted key areas ripe for disruption and growth, each offering the potential to significantly redefine the financial landscape. 

Untapped Potential: From Cash to CBDC and Beyond

One of the most intriguing possibilities Dilip Asbe discussed was the conversion of cash to Central Bank Digital Currency (CBDC). He revealed that the Reserve Bank of India (RBI) has already initiated efforts in this direction, paving the way for a more efficient and secure financial system.

"With the robust architecture and global reach of platforms, coupled with the strategic vision of the government and RBI, Indian fintech are poised for a seamless transition into the global arena." - Dilip Asbe

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International Expansion and Contextual Solutions

The discussion also explored the burgeoning potential of international payments powered by UPI and remittance services. Dilip Asbe said, “I feel confident that these areas are poised for explosive growth, and will further solidify India's position in the global financial arena.”

Harshil Mathur from Razorpay concurred with Dilip Asbe’s views. He said Indian fintech companies should do what technology firms from the US did to position themselves as dominant corporations on the internet. Mathur added, “One of the things that we have seen play out with US companies is that since technology companies came from that country, these companies became dominant firms on the internet. We should do that with fintechs.” 

Building on a Strong Foundation

Dilip Asbe acknowledged the crucial role played by the Reserve Bank of India (RBI) and the government in fostering innovation. He highlighted their foresight in creating a layered architecture that enabled the development of ground-breaking initiatives like UPI, Fastag, BBPS, and Rupay. These public goods, coupled with the establishment of execution agencies like NPCI, provided the fertile ground for private FinTech companies to flourish.

“Creating an acquiring footprint, creating value-added services over that, I think it is very logical for fintechs in India. I would be really surprised if we lost that game. With the clear thinking of the government and RBI, Indian fintechs will go global, as simple as that,” said Dilip Asbe.

The Power of Collaboration:

Dilip Asbe emphasised the critical role of collaboration in the Indian FinTech ecosystem's success. He pointed to the synergistic relationship between FinTech players and banks, where FinTechs leverage the public infrastructure while banks scale their systems to accommodate the increased demand. This collaborative approach, evident in the evolution of UPI over the past eight years, has been instrumental in driving digital adoption. This collaborative strategy, he believes, holds the key to unlocking India's FinTech potential on the world stage.

Balancing Innovation, Growth, and Compliance:

Dilip Asbe stressed the importance of responsible innovation in the Indian FinTech landscape. He emphasised that while growth is essential, it must be accompanied by strong

compliance practices. Building a culture of long-term compliance from the outset is crucial for sustainable growth, allowing FinTech companies to scale responsibly and remain accountable to the government and their users. 

He further stated, "Whatever is not written in regulation means a no… When we are part of managing other people’s money, we should be responsible. Compliance is good and risks become higher with size. If fintech founders are here to build long-term, I don’t see it without compliance,” said Dilip Asbe.

Creating Sustainable Business Models:

Dilip Asbe elaborated on the government's objective of promoting free and affordable payments

as a means to encourage the transition from cash to digital transactions. He believes that “Infrastructure development takes time, and the key lies in minimising resistance

while accelerating the conversion rate to digital payments. By making digital payments

accessible and user-friendly, the FinTech industry can achieve sustainable growth.”

Leveraging AI for Growth and Hyper-personalisation:

As Dilip Asbe emphasised, embracing Artificial Intelligence (AI) is no longer optional for the future of FinTech. From data-driven decision-making to hyper-personalisation, AI offers a powerful toolkit for growth, risk management, and customer experience. Dilip Asbe further underscored NPCI's commitment to innovation, stating, "This focus on AI adoption is indicative of the continuous innovation efforts at NPCI, driven by our ambition for 10x growth." 

This relentless pursuit of innovation, coupled with India's unique strengths, positions the nation as a formidable player in the global FinTech landscape, potentially even shaping the future of payments worldwide.

Moneycontrol Journalists were not involved in the creation of the article.