Zubair highlights decline in debit card usage, favoring UPI instead
The Unified Payments Interface (UPI), a transformative force in India’s digital landscape, revolutionizing the way financial transactions are conducted, is extending its influence far beyond the nation’s borders, shaping global conversations around economic growth, entrepreneurship, and job creation.
A recent webinar, titled “Times Ascent – Driving Job Creation Through Digital Payments,” organized by the Times of India, showcased how UPI is propelling India’s digital economy to new heights.
“Indeed, UPI https://www.npci.org.in/ has been a game-changer, offering a level playing field for digital transactions, says Girish Krishnan, a Professor in the Finance and Accounting Area at the IIM Bangalore.
“The government-backed digital infrastructure has instilled trust from day one, fostering rapid adoption and innovation. The simplicity of UPI empowers users to conduct transactions seamlessly across various platforms, promoting financial inclusion and efficiency,” he told the webinar.
“UPI’s convenience and digital empowerment are reshaping payment ecosystems, leading to a harmonious coexistence of traditional and digital methods,” added Zubair Ulla, Director Payments, Rewards, BigData, Merchant Services, Amazon Pay https://pay.amazon.com/ .
“As we navigate this transformative landscape, the future holds promise for seamless transactions and enhanced financial empowerment.”
Zubair highlights a decline in debit card usage, especially in e-commerce, favoring UPI instead. While credit cards offer extended credit periods, UPI’s integration with credit cards sparks consumer interest.
He envisions a coexistence of payment methods, with UPI https://www.rupay.co.in/ driving transformative changes in the payment landscape towards convenience and financial empowerment.
Atul Saigal, Senior Vice President – Commercial Cards, Axis Bank https://www.axisbank.com/ , joined Krishnan in highlighting the role of digital payment systems in catalyzing job creation, emphasizing both direct and indirect employment opportunities.
Saigal noted that UPI has been instrumental in driving the digital payment revolution, leading to increased efficiency and acceptance across consumer and business sectors, thereby boosting cash flows for businesses and fostering expansion. Moreover, the proliferation of fintech firms in the payment sector has directly employed around 80,000 individuals and indirectly contributed to over 200,000 jobs.
Krishnan explored the secondary effects of digital payments on job creation and economic growth, noting that UPI serves as a nexus connecting consumers and service providers, leading to a wide range of employment opportunities. He also highlights how the increasing demand for digital payments compels merchants to adopt technology, resulting in enhanced efficiency and integration into the digital economy.
“Technology-driven financial inclusion is reshaping the digital payment sector, democratizing access and catalyzing economic growth,” observed Dr Sankarshan Basu, Head – Digital Channels, Ujjivan Small Finance Bank https://www.ujjivansfb.in/ .
Dr. Basu draws parallels between the digital payment revolution and the transformative impact of electronic stock exchanges like NSC on stock market trading. He highlights UPI’s democratizing effect on financial access.
Additionally, Dr. Basu underscores the importance of data analytics in developing credit scoring models and predicting financial risks, which fosters financial resilience. He also discusses the growing demand for cybersecurity professionals to protect consumer data and emphasizes the integration of digital payments across various sectors, driving employment growth.
Saigal emphasizes the need for strong risk management systems in financial institutions and fintech firms amidst the rapid growth of digital transactions. He stresses the importance of dedicated teams to combat fraud and maintain the security of digital financial ecosystems. In response to increasingly sophisticated cyber fraud tactics, FIs and Fintechs must continuously strengthen their cybersecurity defences.
Zubair highlights the crucial role of consumer awareness in fighting cyber fraud. He emphasizes the importance of information security specialists in mitigating risks associated with digital payments and underlines the need for financial institutions and fintech firms to bolster their cybersecurity defenses against evolving threats.
In the wake of the digital revolution, the financial sector finds itself at the forefront of transformation. Dr. Sankarshan said, “In the digital era, technology and data redefine the landscape of finance, empowering decision-making, mitigating risks, and highlighting the critical importance of cybersecurity.”
He mentioned that in today’s digital era, institutions must invest in talent and cybersecurity. With digital banking on the rise, the need for data security experts is booming. Equipping themselves with skilled staff and robust security measures enables institutions to thrive in this increasingly digital financial environment https://digitalinasia.com/ .
Saigal highlights the transformative potential of digital lending for MSMEs, emphasizing the collaborative efforts between fintech companies and traditional institutions in bridging the credit gap and driving economic empowerment.
He delved into the transformative impact of digital lending on small and medium enterprises (MSMEs), addressing their significant credit gap. Fintech solutions leverage data and digital payment infrastructure to bridge this divide, fostering economic growth and financial inclusion for underserved MSMEs.
In the realm of FinTech, AI holds the key to revolutionizing the industry, with data from platforms like UPI providing invaluable insights into consumer behavior, paving the way for predictive models and personalized financial services.
Krishnan emphasizes AI’s pivotal role in revolutionizing FinTech by leveraging data from platforms like UPI to understand consumer behavior, enabling predictive models and personalized financial services, transforming the industry.
Saigal highlighted Axis Bank’s efforts to empower MSMEs through digital solutions, including an API-driven payment stack and streamlined digital onboarding, enabling seamless financial management for MSMEs across India.
Krishnan discussed Amazon Pay’s innovations, such as the interoperable Amazon Pay Balance wallet linked to UPI, addressing issues like UPI failures and offering an Auto Load feature for enhanced transaction success rates and security.
Zubair emphasized Ujivan’s focus on financial and digital inclusion, particularly targeting non-tech-savvy customers with the HelloUG1 mobile banking app. This user-friendly app has successfully onboarded over 500,000 first-time digital users with features like voice guidance and simplified transactions.
The webinar speakers concluded that the UPI stands at the forefront of innovation, propelling economic growth, nurturing entrepreneurship, and transforming job markets in India and globally. Its simplicity, accessibility, and transformative capabilities are revolutionizing digital payments, opening doors to unprecedented financial inclusion and empowerment.
In the evolving digital landscape, UPI’s impact will continue to shape the future of finance, driving progress and prosperity. From fostering jobs in fintech to catalyzing growth across industries, UPI is integral to India’s expanding workforce.
As digital transactions soar and financial access broadens, UPI’s role in creating job opportunities ensures a future of economic empowerment and abundance, said the industry stalwarts while providing invaluable insights into UPI’s impact on various sectors on 30 Mar. fiinews.com
