Currently, the global giant Visa processes 22.5 billion transactions every month, while its rival MasterCard handles more than 11 billion transactions.
According to a high-ranking official from the National Payments Corporation of India (NPCI), India has the potential to conduct 100 billion Unified Payments Interface (UPI) transactions monthly. This represents a tenfold increase compared to the 10 billion transactions achieved by the platform since its launch in August 2016.
Dilip Asbe, the CEO and Managing Director of NPCI, mentioned that there are presently 350 million UPI users, and he anticipates a threefold growth opportunity in both merchants and users.
Speaking at the Global Fintech Fest, Dilip Asbe remarked, "Considering the cumulative impact, we have a tenfold growth opportunity ahead of us."
While he refrained from specifying a particular timeline for NPCI's target, he did predict that by 2030, India would be witnessing a daily volume of 2 billion transactions.
Currently, Visa, a global behemoth in the financial industry, handles 22.5 billion transactions each month, while its rival, MasterCard, manages over 11 billion transactions.
Dilip Asbe also highlighted the potential for a tenfold expansion in credit card usage through the adoption of the emerging trend of sachetisation. However, he emphasized that this transformation could only occur if banks offer the necessary platforms.
Currently, the expenses associated with acquiring and underwriting credit cards are exorbitant, presenting a significant challenge to the goal of financial inclusion. However, he pointed out that digital and technological services have the potential to alleviate this issue.
Regarding the internationalization of the UPI, Dilip Asbe explained that such endeavors require regulatory support. NPCI aims to establish the necessary partnerships by 2030 to facilitate seamless payments between India and half of the top-30 global markets.
Furthermore, discussions are underway between the organization and Singaporean authorities to raise the single transaction limit from its current SGD 1,000 to over SGD 5,000, as mentioned by Dilip Asbe.
He also emphasized that NPCI is working towards transforming itself into a contributor to open source technology, marking a shift from its previous role as a consumer of such technologies.
