Introducing fee-based transaction charges on UPI payment transactions would drive a wedge into India's already-disrupted digital payment ecosystem - KUNAL JHUNJHUNWALA FOUNDER OF AIRPAY

In India's ongoing shift toward a cashless economy, the debate around digital transactions versus cash continues to evolve, with a key focus on government policies like UPI transaction fees.

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With over two decades of entrepreneurial experience, Kunal Jhunjhunwala, Founder of airpay, India's first omnichannel digital payments platform, has led airpay's evolution from a homegrown fintech startup to a global financial services ecosystem that serves over 60 million consumers across three continents.

In this exclusive interaction, Kunal shares how airpay is bridging financial gaps through its open architecture platform, strategic acquisitions like Finmapp (now airpay money), the role of innovation in ensuring that India's digital financial future remains accessible to all, while navigating regulatory landscapes and fostering financial literacy through initiatives like airpay academy.

With the gap between cash and digital payments still prominent in India, what are the biggest structural or behavioral barriers—and how can fintech players actively bridge this divide?

India's digital payments market is one of the fastest-growing globally, yet cash still dominates, especially in tier-2, tier-3 cities and rural areas. Infrastructural barriers like bad internet connectivity, smartphone penetration, and unavailability of last-mile payment alternatives like PoS (point-of-sale) devices serve as stumbling blocks in accepting any digital payment method. Other factors that hinder this transition include behavioral ones, such as trust in cash, fear of digital fraud, and low financial literacy. airpay is trying to nip these challenges by giving rural merchants and underserved community members seamless digital onboarding with multilingual support and interoperability across banks and wallets. Through these educational and local outreach efforts, airpay is laying the groundwork for secure cashless payments to be a part of the user's daily life.

As the Government of India explores implementing transaction fees on ATM withdrawals and possibly digital payments, what impact could this have on consumer behavior and digital payment adoption?