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Business techcrunch.com ·2h · 1 min

AI to Drive Next Phase of Digital Payments Growth, Says Indian Executive

The CEO of NPCI is betting on viable business models and artificial intelligence to advance India's UPI payments system.

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Artificial intelligence is set to play a central role in the next cycle of digital payments expansion, according to Dilip Asbe, Managing Director and CEO of the National Payments Corporation of India (NPCI). In recent statements, the executive indicated that the technology will be a significant component in the evolution of financial transactions in the country.

According to Asbe, the payments ecosystem needs to evolve to ensure operational sustainability. The executive noted that creating a viable business model is fundamental for new apps based on the Unified Payments Interface (UPI) to become more competitive in the Indian market.

India has consolidated UPI as one of the world's largest real-time payment infrastructures. The vision of NPCI's leadership suggests that the system's next phase will depend less merely on increasing transaction volume and more on operational efficiency and the economic viability of its participants.

Incorporating artificial intelligence tools into payment processing can optimize user experience and risk management. For new entrants in the sector, adopting these technologies alongside more robust revenue structures could level the playing field with already established platforms.

The statements come at a time of evaluation regarding the financial future of payment apps in the country. The focus on sustainable business models reflects a maturing industry, which seeks to align technological innovation with profitability in a highly competitive market.

Sources
How will AI impact the next phase of digital payments in India?

According to NPCI CEO Dilip Asbe, artificial intelligence will optimize user experience and risk management. AI adoption will help new UPI apps become more competitive and level the playing field with established platforms.

Why does the UPI payments ecosystem need a viable business model?

A viable business model is fundamental for operational sustainability. As the industry matures, the focus is shifting from merely increasing transaction volume to ensuring the economic viability and profitability of payment apps.

What is the current state of India's UPI system?

India has consolidated the Unified Payments Interface (UPI) as one of the world's largest real-time payment infrastructures, with its future growth depending on operational efficiency and technological innovation.