PhonePe's Shivnath Thukral highlighted UPI's expansion into digital lending and noted the large untapped market for digital payments in India, crediting the government and RBI for their supportive roles in the growing fintech ecosystem.
Unified Payments Interface (UPI) is opening new frontiers beyond payments, particularly in digital lending, even as a significant section of India's population is yet to be brought into the digital payments ecosystem, Shivnath Thukral, Vice President, Public Policy & Government Affairs at PhonePe, told ANI on Thursday.
Speaking to ANI on the sidelines of the ASSOCHAM Fintech Summit, Thukral said India's digital payments ecosystem has witnessed unprecedented growth, driven by the digital public infrastructure created through collaboration between the government and the private sector. "We are hugely excited by the entire digital payment space. If you look at the numbers of July, it is almost equal. This is a huge opportunity for India based on what both the government and the private sector have built in terms of the digital public infrastructure. And with UPI, we can open up different frontiers about lending, which is what we are doing," Thukral told ANI.
He said India still has a substantial untapped market, with millions of people yet to adopt digital payments. "If you look at India's population, we have a significant number of people still to be onboarded onto digital payments. So both in terms of potential and the opportunity of what we can do for the country's progress, I think fintech is like a lifeline of the country," he said.
Regulatory Support and Collaboration
Thukral credited the government's policy support and the Reserve Bank of India (RBI) for fostering innovation in the fintech sector while maintaining regulatory oversight. "We are very happy and working very closely with the entire regulatory ecosystem. The government has been supportive. We have a very progressive regulator in the RBI and the whole idea is how the private sector and the government can work together to make sure that we continue to build the future of fintech in India," he said.
Addressing Cybersecurity Threats
On the growing threat of cyber frauds, Thukral said cybersecurity remains a top priority for fintech companies, adding that internet-based services will always face vulnerabilities and therefore require continuous investment and vigilance. "Anything which has to do with the internet will have vulnerabilities. Each of the companies, thanks to a very vigilant regulator, works very closely to make sure that we are on top of the game. The question is what are the companies doing about it and how do we stay ahead of the game," he said.
He said fintech firms have invested thousands of crores of rupees in strengthening cybersecurity infrastructure and protecting digital transactions. "I think companies have been doing a pretty commendable job investing thousands of crores of rupees in making sure that the cybersecurity walls are well protected. I would honestly compliment the regulator and the government for working diligently with the industry. It is not working in isolation, which is a great signal for the economy," Thukral added.
Thukral was speaking after addressing the ASSOCHAM Fintech Summit, where he highlighted the transformative role of digital public infrastructure in accelerating financial inclusion and expanding the scope of digital financial services in India. (ANI)
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