The Unified Payments Interface (UPI) system may not see many new players entering the space as it has got aggregated with a few players, according to a report.
As a payment product, however, UPI will continue to scale with more innovative use cases coming in and will remain the default payment gateway for the country, stated the report by The Digital Fifth.
While UPI has enabled innovation in the payment space, it has resulted in larger players taking complete control of the market, it said.
With the wallet business depleting and UPI getting aggregated under a few players, there may not be many new players entering this space.
The report also came out with a list of the top 30 fintech influencers that includes Niti Aayog Advisor Anna Roy, Ujjivan Small Finance Bank CEO Nitin Chugh and CreditMantri co-founder Gowri Mukherjee.
The advisor on industry and data management and analysis at Niti Aayog, Anna also leads the Women in Entrepreneurship Platform (WEP) initiative, supporting women entrepreneurs in India. She is leading the Government of India's initiatives on frontier technologies such as BigData, artificial intelligence, and blockchain.
The report further said the remittance business would continue to scale as the market has remained largely untapped to date.
India will see the emergence of a few large remittance players with focus on high-traffic corridors, it said.
The business-to-business segment has done well over the past few years across POS (point-of-sale) and payment gateway segments, with firms such as Pinelabs and Razorpay building scalable and profitable business models, it added. According to the report,
“This segment has primarily depended on merchant discount rate for their revenues. In the budget, the government has proposed that the establishments with an annual turnover of more than Rs 50 crore will offer low-cost digital modes of payment to customers and no charges or MDR shall be imposed on customers or merchants.”
This change will impact payment startups focusing on the issuance side where they share issuance fees with banks and the acquirer side, it said.
(Edited by Athirupa Geetha Manichandar)