India's Unified Payments Interface (UPI) reached a record of 1.5 billion transactions in July 2020.

The unrelenting impact of Covid-19 pandemic has created an urgent need for reliable and on-demand access to digital payment solutions. With the persistent threats to lives and livelihood, contactless interactions becomes more and more an integral part of all kinds of transactions. The present challenge for Fintech players therefore is to adapt fast to this new normal world and constantly innovate to offer services with clear value proposition for consumers.

India's Unified Payments Interface (UPI) reached a record of 1.5 billion transactions in July 2020.

Wide acceptance of digital interactions is one of the positive changes in our day-to-day life with innovative payment solutions at the forefront of this paradigm shift. Indian Banks together with fintech players continue to focus on leveraging the real rime payments rails and API layers for various needs of both individual customers and businesses - resulting in the recent surge of UPI transactions along with IMPS and BBPS transactions.

In 2016, Nandan Nilekani presciently spoke about "The WhatsApp moment in Indian banking..." By 2019-20, India's digital payment market was worth around Rs 2,162 trillion. The financial services sector in India is indeed in the early growth-stage of a digital innovations era. India's success so far to address diverse needs of consumers spread across fragmented market with different demography has created a rich substrate of integrated payment infrastructure.

UPI 2.0: Leverage UPI for business payments.

NPCI lead transaction platforms are now enabling business payments across a variety of industries and use cases. Innovative "mix and match" of features on top of UPI Payment Stack allows the launch of highly customizable and business specific payment solutions. For example, payment transactions can be preauthorized with a pay later option or business entities can link UPI account with a corresponding overdraft account. Whereas adoption of Reserve Bank of India's (RBI) account aggregator (AA) framework offers better access to transaction data, helping businesses in account profiling and credit scoring.

According to a recent report from RedSeer Consulting, the Bengaluru-based management consultancy firm "... current 160 million unique mobile payment users will multiply by 5 times to reach nearly 800 million by 2025. This growth will be driven by a number of demand and supply-side drivers," Backed by aggressive Governmental policy push, sweeping digital innovations are transforming key industry sectors such as education, agriculture, healthcare, supply chain finance, ecommerce etc.

At MSS Payments, we understand how critical it is for businesses to meet the growing demand for digital payments. It has been our constant endeavor to offer customers a portfolio of business solutions with a wide range of business applications - UPI Payments gateway, QR code checkout, API for bulk UPI payments; a comprehensive merchant management solution and white-label prepaid cards. We have built these enterprise product modules to provide businesses with the features they need to launch customized services for their customer base.

The ubiquity of smartphone use in India will continue to drive digital interactions.

A recent report jointly released by Indian Cellular and Electronics Association and consulting firm KPM projects "820 million Smartphone Users by 2022". Among other noteworthy facts, the report also highlights "India's #1 rank in terms of app Downloads in the World". This critical mass will continue to accelerate the wide acceptance of digital payment solutions by both individual consumers and businesses. Thus, Digital wallets and mobile payment apps will be the gateway for access to end users.

One may expect that, some of the Indian Banks and Fintech players will leverage this domestic market success to expand their overseas presence - contributing towards the Global Digital Flow powered by Digital India.