GFF 2024: A Watershed Moment for India’s Fintech Industry
- Risav Chakraborty, Kshitija Kaur, Samridhi Singh and Chinmayee Kadam
- 9 mins read
- Digital Finance, Partnerships
Table of Contents
India's Fintech Trifecta: Payments, Lending, and Data
India’s fintech journey is truly one-of-a-kind, driven by a robust mix of government and regulatory initiatives alongside the development and scaling of cutting-edge digital public infrastructure.
This year at GFF 2024, the spotlight was on three major pillars: Payments, Lending, and Data. From advancements in the payments landscape to innovative lending solutions, and the transformative role of data—whether through account aggregators or alternative data sources for KYC, fraud prevention, and credit risk assessment—India is setting the stage for a new era in fintech. Data, in particular, is reshaping how the industry approaches both payments and lending, unlocking new opportunities and enabling a new era for innovative and inclusive financial services.
Let’s dive into these trends and explore what’s driving the next wave of innovation in India’s fintech scene!
1. Government and Regulators Rally Behind Fintech
2023 marked a watershed moment for the Global Fintech Fest (GFF) as it ascended to unprecedented heights. The stage was set ablaze with luminaries from the government and regulatory bodies, including the Prime Minister, the Finance Minister, and the RBI Governor. Their presence underscored the immense significance of GFF in shaping India’s economic trajectory and propelled the event into the global spotlight.
These esteemed leaders shared their insightful perspectives on the nation’s economic roadmap, the evolving financial landscape, and the pivotal role of fintech in catalysing India’s transformation into a developed nation by 2047.
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2. RBI Initiatives Set the Tone for Payments and Lending
At the GFF24, the spotlight on Reserve Bank of India’s (RBI) payment licences highlighted the regulator’s meticulous approach to shaping India’s payment landscape. In 2024 alone, the central bank has already issued 20+ payment licences across multiple categories such as Payment Aggregator (PA), Cross-Border Payment Aggregator (PA-CB), and Prepaid Payment Instruments(PPI). The PA-CB licence has been granted to 4 players, which includes Adyen, Amazon Pay, BillDesk, and Cashfree Payments, which signifies RBI’s intent to allow domestic and international payment service providers to facilitate cross-border payments for Indian customers.
Another interesting development included the introduction of RBI’s Unified Lending Interface (ULI), which connects lenders and borrowers through a common platform. At GFF24, discussions around ULI emphasised its pivotal role in helping more people, especially those underserved, to get loans quicker by allowing lenders to easily access a borrower’s financial and non-financial data from multiple sources. This ensures quicker and easier credit decisions while making the borrowing experience hassle-free for a wide range of people. Here’s a quick look at how it works and what it could mean for the future of lending in India:
3. Credit Line on UPI Comes Out of Shadows
A prominent highlight at GFF24 was the presence of the “Credit Line on UPI” feature. Launched by the RBI in September 2023, it is now being enabled by various banks, infrastructure providers, and consumer-facing UPI apps. This facility enables customers (individuals and businesses) to access pre-sanctioned credit lines from banks. Customers can link these pre-sanctioned credit lines to their UPI apps and make payments via the UPI apps using the credit lines as source accounts.
As the infographic below illustrates, CLOU has garnered significant traction, with major players embracing this technology. This collaborative effort between banks, payment gateways, and fintech companies is poised to drive wider adoption of CLOU, further boosting digital payments in India.
Role of Banks: Leveraging advanced technologies such as data analytics and artificial intelligence, banks can identify credit line opportunities for customers engaged in significant UPI-based digital payments. Eligible customers may discover or get notified through their banks about the pre-approved credit lines. Once they choose to apply for the credit line offer, they can proceed with the Know Your Customer (KYC) process and agree to the terms and conditions. Following credit underwriting and approval, the bank will establish a dedicated credit line account for the customer, which includes a unique account number specifically for Credit Line on UPI transactions. The bank determines the credit limit, interest rate, and repayment terms for the credit line.
Role of Payment and Credit Infrastructure Providers: Middleware platforms facilitate the integration with UPI infrastructure, allowing banks and fintech companies to offer credit line services through the UPI interface. These platforms enable real-time processing of credit line transactions by linking a user’s UPI account with a pre-approved credit line. They ensure that payments are processed against the credit line, instantly verifying available credit and updating balances. Payment processors work with acquirer banks to enable businesses to accept payments via credit lines on UPI, providing customers with an additional payment option during checkout.
Role of User-Facing UPI Apps: Users with an active credit line can easily link it to their UPI app. The app will automatically detect the credit line account if it is associated with the user’s phone number, simplifying the setup process. Once the credit line account is selected within the app, users can begin making transactions.
To acquire a credit line on the UPI platform, users have to apply at their bank, submitting a formal application with the necessary documents. Upon submission, the bank assesses the applicant’s creditworthiness and establishes a credit limit upon approval, notifying the applicant accordingly. Once approved, users can link the credit line to their UPI app, enabling the utilisation of the overdraft facility for making payments. The credit limit available for transactions with merchants mirrors that of the linked bank account, streamlining financial operations within the UPI ecosystem.
Here’s a demonstration of how CLOU enables EMI payments—a critical functionality reshaping the credit ecosystem in India. As UPI integrates deeper into consumer financing, this innovation brings unprecedented flexibility, making repayments more seamless for users. Watch how users can now opt for an easy EMI option while transacting via UPI, expanding accessibility and affordability within the UPI ecosystem:
4. New Frontiers in Indian Payments
At the #GFF24, significant launches in the payments landscape were unveiled, marked by product innovations and strategic collaborations across major industry players.
a) Visa’s 9 Key Product Launches:
Visa launched nine groundbreaking payment products to drive digital payment adoption across India. Among the most notable was HDFC Bank’s All-in-One POS device, integrating card, QR code, and soundbox functionalities, targeting merchants in smaller cities. Another standout was Paytm’s NFC Card Soundbox, a two-in-one device enabling both card and mobile QR payments.
The Neo for Merchants app, developed by Axis Bank and Visa, offers omni-channel payment acceptance with business insights. Visa also powered PayU’s Push Provisioning solution, simplifying token-sharing between banks and merchants. From CRED’s in-app tokenisation feature to Pine Labs’ Mini Device for Tier 3–6 cities, Visa’s focus was on secure, accessible, and inclusive payments.
b) Visa’s Co-Branded Card Strategy:
Visa further emphasised its dominance in co-branded cards, revealing that one in three new cards in India now features a co-brand. Leveraging spending data, Visa helps issuers identify market opportunities, and the company’s partnerships have spanned sectors such as airlines, retail, and now e-commerce. By leveraging its vast global experience, Visa supports issuers throughout the co-branding process with its comprehensive suite of services, including data analytics for insights on customer spending, fraud prevention, and advisory.
c) Mastercard’s Payment Passkey Service:
Mastercard introduced its Passkey Service, set to pilot with major players like BigBasket and Axis Bank. The service seeks to replace one-time passwords with passkey and tokenisation-based authentication, ensuring fast, secure online checkouts via biometric verification.
d) Boat-Mastercard Partnership:
Wearable tech brand Boat partnered with Mastercard to bring tap-and-pay functionality to smartwatches. Users can tokenise their Mastercard credentials, enabling tap-and-pay of up to Rs 5,000 via a POS device without requiring a PIN. Through this collaboration, Boat smartwatch users can now use their smartwatches for contactless payments via Crest Pay, the company’s official app.
e) RuPay’s NCMC Cards and Beyond:
RuPay showcased its NCMC (National Common Mobility Card) with real-time demonstrations via vending machines at the event. Developed in collaboration with the Ministry of Housing & Urban Affairs (MoHUA), this card envisages the development of a cashless fare payment mechanism which will work across all the public transport systems in the country, such as metros, buses, and cabs leading to the establishment of an Interoperable Fare Management System (IFMS). RBL Bank, in partnership with Indian Oil Corporation Limited (IOCL), introduced a co-branded RuPay contactless credit card, ‘IndianOil RBL Bank XTRA Credit Card. For those using the RuPay network, the card supports UPI payments and offers the features of the National Common Mobility Card (NCMC).
f) Payment Parallels: Razorpay and Pine Labs’ Shared Focus
Razorpay and Pine Labs took centre stage at the GFF24 with innovations, pushing the boundaries of the payments ecosystem.
- Razorpay UPI 360: Razorpay UPI 360, developed in collaboration with Axis Bank, leverages advanced cloud technology to optimise UPI infrastructure. Its UPI Switch ensures seamless performance with zero downtime, sub-100 ms latency, the capacity to process 10,000 transactions per second, and instant refunds.
- UPI Setu: Setu by Pine Labs, in partnership with NPCI and Axis Bank, introduced UPI Setu, a UPI-focused payments platform for businesses and developers. The platform supports a wide range of UPI products, from basic QR code payments, UPI Autopay equated monthly instalments (EMIs), and third-party validation service. It also features functionalities like brand and bank offers, advanced dispute resolution, instant cashback and refunds, all provided via APIs.
g) Cashfree Payments
Our discussions with Cashfree Payments revealed details about two of their latest offerings—‘Payment Switch’ and ‘Contextual Payments.
Payment switch: It is essentially a gateway for payment companies to connect directly with the NPCI, speeding up UPI feature integration and scalability. It features capabilities like instant onboarding and transaction control, reduces transaction times, and enhances the reconciliation process.
Contextual payments: Tailored to match user behaviour, this solution uses dynamic routing and pre-filled details to enable businesses to provide tailored payment experiences by integrating various payment modes, including UPI, wallets, and cards, seamlessly into their platforms.
5. Account Aggregation Adoption is Catalysing Financial Empowerment
At GFF 24, one of the most compelling discussions revolved around the rapid evolution of Account Aggregation (AA) in India. By August 2024, the AA ecosystem had fulfilled 104 million cumulative consent requests, with 92.8 million cumulative accounts linked by account holders, showcasing its nascent but increasing adoption.
Lending and Personal Finance Management (PFM) have become primary use cases within AA. The panel on “AA Ecosystem – Creating Inclusive Growth” highlighted significant milestones: ~$507.6M (₹42,300 crore) disbursed through 4.22 million loans since September 2021, and PFM engaging 10-10.5 million customers.
The potential of AA extends further, with promising applications in:
- Insurance: AA may have a big impact on the insurance sector by simplifying the claims process for unclaimed deposit accounts. Traditionally, tracking down dormant accounts was a cumbersome task for beneficiaries. With AA, insurers can now access consolidated financial data across institutions, quickly identifying and verifying unclaimed deposits linked to policyholders. This streamlines the process, ensuring that funds reach their rightful owners more efficiently and contributing to greater financial inclusion and resource utilisation.
- Advisory Services: Advisors can aggregate data across various financial instruments (bank accounts, investments, loans, and credit cards), allowing for more strategic advice tailored to the client’s entire financial ecosystem. Moreover, real-time data updates ensure that advice is based on the most current financial standing, allowing for dynamic adjustments to financial strategies in response to market changes or shifts in client circumstances.
- Fraud Detection: AA’s holistic view allows for the identification of unusual patterns or behaviours that might indicate fraudulent activity. The panel noted an interesting use case for AA as a potent tool in the fight against insider trading. By consolidating financial data from multiple sources, regulatory bodies and financial institutions can more comprehensively monitor the trading activities of individuals with access to non-public information.
Discussions with Account Aggregators at the event provided valuable insights as well. One of the players in the space, Finvu, shared how their ecosystem has evolved to partner with various public and private banking institutions (Axis Bank, HDFC Bank, State Bank of India, Union Bank of India), NBFCs (DMI Finance, IIFL Finance), insurers (Policy Bazaar, digit), and asset management players (Axis Securities, CRED, Jupiter, IND Money). A key observation was that Public Sector Banks require a more nuanced approach compared to Private Sector Banks. However, the overall consensus among aggregators remained that while AA in India is still in its nascent stages, considerable progress has been made.
A Blueprint for India's Fintech Future
The Prime Minister’s concluding remarks, “Our best is yet to come,” resonated profoundly with the audience, encapsulating the prevailing sentiment of optimism and anticipation. The fintech industry in India has undeniably matured and expanded over the past decade, setting benchmarks globally for payments, data sharing, data governance, and digital identity.
The stage is now set for a transformative convergence of these enablers to cater to the pent-up demand of 1.5 billion consumers and 63 million businesses in India. This synergy will not only propel individual aspirations but also pave the way for India’s emergence as a globally influential economy with an inclusive agenda.
Stay tuned for updates, and join us at GFF 2025 for more insights and innovations!
Authors
Risav is a senior research associate at WhiteSight, where he spends his days navigating the complex fintech landscape and poring over market trends. When he's not decoding the world of fintech, you'll find this sports fanatic decoding the perfect curveball on the football field.
Kshitija is a senior branding associate at WhiteSight, crafting branding strategies and fintech content. When she's not conjuring up new ideas for the company, you can find her dabbling in new hobbies and documenting her experiences through writing and short films.
Samridhi is a fintech analyst within the WhiteSight team, researching fintech trends and providing insights into everything from new markets and investment opportunities. Just like she connects the dots to reveal the big picture of the ever-evolving fintech landscape, she has a keen eye for discovering the brushstrokes of Madhubani paintings and the contours of the hills.
Chinmayee Kadam
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