UPI has seen a 10x growth in India and will grow at the same rate as newer use cases like retail investing for initial public offerings (IPOs) through UPI, and features such as Autopay are added, Asbe said at a panel discussion at Bengaluru Tech Summit 2020.
Despite crossing the 2 billion transaction mark in October, there is room for growth, as more use cases await approval, he said at the panel discussion with Siddharth Tiwari, chief representative for Asia Pacific at the Bank of International Settlements and Nikhil Kumar, co-founder of fintech API-provider Setu.
When asked whether NPCI will be looking to ‘democratize’ the credit infrastructure, the same way as UPI did for India’s payments economy, Asbe replied that credit can be a big opportunity for NPCI; however, it is subject to the regulator’s approval, in this case the Reserve Bank of India.
“Now, the stage has come that we start planning and expect UPI to reduce cash circulation in the country. It should deliver on its initial promise. As we look at 10x growth, we continue to work closely with the RBI, while ensuring that UPI is the most preferred ecosystem in the country," Asbe said.
He added that the Autopay feature launched in August will dramatically change the payment landscape, as 90% of Indian transactions happen under ₹2,000, and the feature eases the dependence on cash.