Securing the foundation: How plutos ONE facilitates digital payments from behind the scenes
Founded in 2022, Noida-based plutos ONE provides financial institutions with a scalable and secure digital payments backbone and aims to ensure uninterrupted digital transactions for partner banks and their customers.
In India’s rapidly evolving digital economy, seamless and secure payment infrastructure is essential. With payment solutions such as UPI, mobile wallets, and digital banking apps becoming mainstream, it has become critical to strengthen the underlying technology given the threat of cyberattacks, network congestion during high-traffic periods, and glitches and outages that may interrupt transactions.
This becomes even more crucial as India’s payments market—estimated at $421.50 billion and expected to reach $960.22 billion by 2030, according to Mordor Intelligence—faces increased regulatory scrutiny. Recently, the Enforcement Directorate initiated an investigation into Paytm for alleged Foreign Exchange Management Act violations and rising digital fraud cases flagged by the RBI.
, a fintech startup founded in 2022 by Rajjat Gulati and Rohit Mahajan, helps financial institutions modernise their payment systems, ensuring efficiency, security, and scalability.
It is a licensed and empanelled technology service provider for the Bharat Bill Payment System (BBPS) under NPCI Bharat BillPay Limited.
Addressing infrastructure challenges
Gulati and Mahajan, both with extensive experience in the payments industry, identified a fundamental challenge: despite being central to financial transactions, banks struggled with outdated infrastructure that hindered the adoption of modern digital solutions. A report by the Boston Consulting Group in 2024 indicated that Indian banks allocate only up to 5% of their revenue to IT spending, whereas the global benchmark ranges between 7% and 9%.
“The idea for plutos ONE emerged from our previous venture, Loofre, a merchant aggregator for banks. We saw firsthand how digital payments were transforming consumer behaviour, yet banks lacked the necessary infrastructure to support this transformation,” Gulati, Co-founder, plutos ONE, tells YourStory.
“Our mission is to bridge this gap by providing financial institutions with a scalable and secure digital payments backbone,” he adds.
Building scalable payment solutions
plutos ONE enables banks to function as Biller Operating Units (BOUs) within the BBPS framework, allowing them to offer real-time transaction management, automated reconciliation, and secure payment processing. BOUs facilitate digital bill payments by acting as intermediaries between billers and the BBPS ecosystem.
The Noida-based startup integrates a vast network of service providers, including utility companies, telecom firms, and financial institutions, covering over 1,200 billers across electricity, water, gas, and telecom sectors.
“Banks are the pillars of trust in financial transactions, yet many still operate on legacy systems that make it difficult to integrate cutting-edge digital solutions. We are here to facilitate that transition seamlessly,” Gulati says.
Additionally, plutos ONE, with a team of 45 members, offers 24/7 support to ensure uninterrupted digital transactions for partner banks and their customers. Its payment infrastructure is designed to handle high transaction volumes while minimising operational friction.
Enhancing consumer engagement
plutos ONE incorporates AI-driven conversational interfaces into its platform. Users can pay bills via WhatsApp and other messaging platforms, with support for 18 languages, including regional dialects and voice commands, to make digital payments more accessible to individuals who may be unfamiliar with traditional app-based transactions.
“AI and conversational interfaces are the next frontier in digital payments. By enabling transactions through platforms people already use daily, we’re making bill payments intuitive and inclusive” he explains.
Additionally, the startup has introduced an incentive-based programme in partnership with over 400 online brands. Users gain access to exclusive deals and cashback offers when making digital bill payments.
Automated bill payments further simplify the process, allowing users to schedule recurring transactions and avoid missed payments.
Revenue model and financial growth
plutos ONE operates on a B2B SaaS model, generating revenue through subscription fees, transaction-based pricing, and premium service offerings for banks and financial institutions.
It generates revenue through multiple streams, including subscription fees charged to banks for access to its digital payments platform, transaction-based fees earned on each bill payment processed through the BBPS network, and premium offerings such as advanced analytics, AI-driven engagement tools, and white-labelled payment solutions for financial institutions.
In August 2024, plutos ONE raised $2 million in seed funding from , , and Raghuvanshi Investments. The company is using the capital to onboard more banks, enhance AI-driven capabilities, and expand the company’s digital payments infrastructure.
The startup holds PCI-DSS (Payment Card Industry Data Security Standard) and ISO (Information Security Management System) 27001:2013 certifications, operating on MeitY-certified data centres powered by Google Cloud for enhanced data security and operational resilience.
“Security is non-negotiable. As digital transactions grow, so do cybersecurity threats. Our goal is to not only facilitate seamless transactions but also to do so with the highest levels of trust and compliance,” Gulati emphasises.
plutos ONE says it actively aligns with RBI guidelines and NPCI regulations, conducting regular audits and compliance updates to ensure adherence to evolving financial standards.
Expanding reach and strategic partnerships
plutos ONE has partnerships with industry leaders like NPCI, Visa, HDFC Bank, Kotak Mahindra Bank, and Google Cloud. The company says these collaborations help it scale efficiently and integrate seamlessly within the BBPS framework.
“Strategic partnerships have been crucial for us. By working with established financial institutions, we can bring innovative solutions to market faster and drive digital payments adoption at scale,” he says.
It is actively onboarding more banks into the BBPS network, aiming to expand its footprint across urban and rural markets.
Challenges and the road ahead
plutos ONE competes with players such as Zeta, M2P Fintech and Decentro. The startup notes that prioritising digital bill payment solutions through strategic partnerships and cutting-edge technology is what sets it apart. "As a licensed and empanelled technical service provider for BBPS, we enable banks to seamlessly integrate and enhance their bill payment services, ensuring efficiency and convenience for their customers," explains Gulati.
The startup faces several challenges. Regulatory compliance remains dynamic, requiring continuous adaptation and integrating with legacy banking systems presents technical hurdles.
It is now enhancing its Merchant-Funded Offers Platform, which connects merchants, banks, and customers in a mutually beneficial ecosystem. The startup also plans to introduce more advanced AI-driven solutions tailored for both banks and consumers.
“We’re just scratching the surface of what’s possible. As India continues its digital transformation, we want to be at the forefront, ensuring every financial institution has access to world-class digital payments infrastructure,” he notes.
Edited by Kanishk Singh