UPI is Transforming Credit Growth, According to Amazon Pay India CEO

The Indian digital payment ecosystem has experienced a number of advancements in recent quarters. Following the tremendous success of the Unified Payments Interface (UPI), the Reserve Bank of India (RBI) declared the Unified Lending Interface (ULI) to be launched. The Global Fintech Fest (GFF) is where the National Payments Corporation of India (NPCI) is announcing the introduction of UPI Circle.

In an interview with Outlook Business, Vikas Bansal, CEO of Amazon Pay India, and Mayank Jain, Director of Credit and Lending, discuss the impact of these recent innovations and their influence on India’s fintech and digital payment landscape.

Q: NPCI recently introduced UPI Circle. When can we expect Amazon Pay to implement this feature? Do you foresee any infrastructural changes required for its integration?

Vikas Bansal: I believe this is a significant innovation that will further drive UPI adoption. We are already working towards integrating it. Initially, it will be rolled out within a closed user group, and later, we will introduce it to the broader market. This is simply a part of our product development cycle. While it’s difficult to confirm a specific timeline at this stage, we are already in production.

Q: Amazon Pay has reached 100 million customers on its UPI platform. How did you navigate a market where a few companies hold a dominant position in UPI?

Vikas Bansal: Our focus is long-term, concentrating on making UPI payments easier for customers. This has been our approach, and we plan to stay on this path for the next 5–10 years or even longer.

The UPI space offers numerous opportunities for everyone. Innovations like credit on UPI, RuPay credit on UPI, offline payments, and delegate payments are key enablers that will continue driving the growth of the UPI ecosystem.

We always start by looking at things from the customer’s perspective, identifying the problems they face, and finding unique ways to solve them. This customer-centric approach guides how we continue to enhance the payment experience.

Q: RBI Governor Shaktikanta Das recently confirmed the formation of a self-regulatory organization (SRO) for fintechs in India. What do you think will be the impact of this on the Indian fintech ecosystem?

Vikas Bansal: India has one of the most dynamic fintech ecosystems in the world. SROs can play a crucial role in self-regulating fintech companies and payment service operators.

I believe an SRO is an excellent framework for establishing industry standards, ensuring self-compliance, and facilitating regular consultations with regulators. This collaboration can help address challenges faced by both the industry and regulators, enabling them to work together to find solutions.

With nearly 10,000 fintechs and counting, the regulator may face challenges in managing this rapidly growing sector. In this context, the SRO becomes an important enabler. The expectations from the SRO include setting standards, self-regulating, and self-reporting, which will help drive the ecosystem forward.

Q: Is Amazon Pay planning to launch a standalone app in India?

Vikas Bansal: Our focus is always on customer needs. If there is a clear demand, we will consider moving in that direction. For now, it’s speculative, and we need to fully understand customer requirements before making any decisions.

Q: UPI has been a major success. How do you think ULI could transform the credit market?

Mayank Jain: Just as UPI transformed payments, it is also driving credit growth. Now, there is a digital footprint of customers, capturing their payment behaviors. I believe ULI will accelerate this growth, particularly for the MSME sector, which still relies on traditional evaluation methods for loans despite digitization. ULI will simplify and streamline credit access for MSMEs. Additionally, ULI could lay the groundwork for digitizing secured credit, including land records and asset details, an area that has yet to see much digitization.

Q: The RBI has been raising concerns about the rise in credit, particularly on fintech platforms, for the past few quarters. How do you view the introduction of ULI at this stage?

Mayank Jain: It’s important to note that while the RBI has cautioned about the rise in credit, they are also the driving force behind ULI. We are fortunate to have a regulator as inclusive and customer-focused as the RBI. Over the past few years, regulations have been very customer-centric, such as the introduction of the Key Fact Statement (KFS) and digital lending guidelines, which have made lending much more transparent. When transparency increases, so does market confidence, and this is something we at Amazon, being customer-centric, fully support.

The RBI is now striking a balance. While they’ve made significant strides in digitizing the economy and lending, they’ve also warned about the risks of overleveraging in certain areas. If customers become overburdened with credit, it could erode their trust in the system.

India still faces a shortage of accessible credit, with many having limited access. The RBI is working to expand the credit market while lowering barriers for customers, ensuring responsible growth.