The UPI of 2016 and today are completely different

Unified Payments Interface (UPI) has expanded rapidly, with new use cases being added to the real-time payments system. DILIP ASBE, managing director and chief executive officer of the National Payments Corporation of India (NPCI), speaks with Ajinkya Kawale in Mumbai about the company's next phase of growth. Edited excerpts:

- DILIP ASBE

What are NPCI's big bets right now? The primary focus remains on growing UPI, which has 10x potential. Currently, 400-450 million users use it monthly, but it can grow to over a billion. Expanding the user and merchant base will require investment and new use cases.

Second, we want to expand access to formal credit collaboratively and responsibly. With Reserve Bank of India (RBI) and government support, the Credit Line on UPI can grow the market. UPI has created a strong digital footprint. Now we need tools like Credit Line on UPI for low-ticket, high-frequency credit—unlike credit cards.

Third, we're investing in technology (tech)—artificial intelligence (AI), blockchain, and digital currency. AI helps us assess fraud risks in real time. We've kept reported fraud below 1 basis point of UPI value, which is reasonable.

Fourth, globalization. Cross-border integration needs regulatory cooperation. We've made early progress in seven countries and are enabling merchants. Four to five more countries are exploring our tech stack.

How different is UPI's next growth phase? UPI's true potential is 100–150 billion transactions a month. Reaching the next 600 million users will need hand-holding and initial incentives until it becomes habitual. To build trust, we've run digital payment safety campaigns over the past year. UPI hasn't matured yet—realizing its full potential needs ongoing innovation, investment, and collaboration between banks and financial technology companies.

What's NPCI's position on the merchant discount rate (MDR) discussions?