Key trends in fintech, digital payments that can drive progress in 2023

Akash Sinha, CEO and Co-Founder, Cashfree Payments listed some trends that could drive progress in fintech, digital payments in 2023:

Offline digital payments are gaining ground

The introduction of offline digital payments such as UPI 123pay will increase person-to-merchant (P2M) and peer-to-peer (P2P) transactions via payment apps. This will exponentially increase the financial awareness of users even from the most remote regions, making them a new customer segment for businesses.

Increase in cross-border payments

Home-grown payment solutions will gain further acceptance in foreign markets, and increase cross-border transactions. NPCI’s efforts to expand UPI in markets such as Europe, Belgium, Netherlands, Luxembourg and Switzerland will act as a growth catalyst. Recent initiatives, such as allowing non-resident Indians (NRIs) to pay their bills directly using the Bharat Bill Pay System (BBPS), will speed up this process.

Increased use of BNPL

By 2023, we will witness increased collaboration between banks, NBFCs and payment networks, providing access to credit to a largely underserved market and creating a new customer base. Segments offered by BNPL will go beyond electronics, mobiles and groceries, extending to necessities, healthcare, online education, insurance and travel.

Banking as a Service (BaaS) has proven to be a powerful way to increase the reach of financial services. We are witnessing an increasing focus on practical banking and the utilization of technology-driven innovation. Considering that efforts will increase in 2023, we will undoubtedly get closer to the ambition of hassle-free bank account switching, just like switching mobile phone service providers. It goes without saying that we are entering an exciting phase where fintech and digital payments will become force multipliers in India’s economic inclusion efforts.”