Budget 2025: Push for UPI Expansion and Fintech Growth
Ahead of the Union Budget 2025, leaders in the digital payments industry are pushing for reforms that can speed up financial inclusion and further strengthen India's fintech ecosystem. A prime focus is on upgrading digital payment infrastructure and taking the benefits of UPI to businesses, thus creating a seamless ecosystem for enterprises and consumers alike.
Abhishek Saxena, Managing Director and Co-founder of Omnicard, discussed the untapped potential of digitization in the Indian business landscape. He highlighted that only 6.3% of India's 64 million businesses are digitized, leaving a significant scope for growth. Saxena emphasized the need to shift the focus of UPI toward enterprises, thus unlocking robust payment solutions for businesses and driving overall economic progress. He also suggested measures such as better access to credit, streamlined tax norms, and relaxation in compliance to facilitate the digital transformation of MSMEs.
The industry also has on its agenda globalising UPI and advancing technology in digital payments. Rohit Beri, CEO and CIO of ArthAlpha, said that the policy must promote international acceptance of UPI and encourage technological innovation. Beri emphasized that streamlined compliance norms and expanding penetration of UPI in international markets could make India the world fintech leader. Besides, he advocated expanding the regulatory sandboxes to enhance emerging technologies of blockchain and AI-based payments, leading to innovation without hurting customer protection.
Upgrading digital payment infrastructure in underdeveloped regions is also on the agenda. Beri suggested a higher allocation of budgetary funds for financial literacy and the digital infrastructure needed to bridge the gap in rural and semi-urban parts. Increased participation by these regions would significantly add up to achieving maximum financial inclusion.
Digital payment solutions specifically catering to the needs of MSMEs are considered a critical enabler of economic growth. Kunal Jhunjhunwala, Airpay Founder, said the challenges for MSMEs included delayed payments, inflationary pressures, and high operational costs. He emphasized that targeted incentives for digital payment adoption would enable small businesses to compete effectively in global markets. According to Jhunjhunwala, examples of this kind of digital adoption are ONDC platforms, which can create vibrant marketplaces for small enterprises.
The overall vision that industry experts share is that of a fintech-driven future with digital payments at the center of India's economic strategy. According to Rohit Beri, "A fintech-centric budget with a focus on digital payments will not only enhance India's global position but also create a resilient and future-ready economy".
