Kanan Rai on the UPI Boom: Is India Ready for the Financial Digital Revolution!
Kanan Rai, former director at Google and current executive at Razorpay, discussed the impact of the UPI (Unified Payments Interface) boom in India during an interview with channeliam.com. According to Rai, the UPI has already brought significant benefits to the country in various ways. The adoption of UPI surged following the demonetization period, which resulted in a drastic reduction in the use of black money. Since then, UPI adoption has skyrocketed, positioning India as the third-largest country in terms of FinTech adoption.
Rai highlights that India’s FinTech adoption rate has experienced a remarkable transformation, going from negligible to an impressive 87%. This surpasses the global average adoption rate of approximately 64-67%. The high adoption rate of FinTech products, particularly UPI, has revolutionised the way transactions are conducted in India. Whether it’s a transaction at a high-end restaurant or a purchase from a street vendor, UPI has become widely prevalent across the country. Rai commends the government and India as a whole for achieving such significant adoption.
When asked about India’s readiness for the ongoing digital revolution in the financial sector, Rai asserts that the revolution is already in progress. While sectors like e-commerce had an early start with companies like Flipkart and Amazon, the past four to five years have witnessed the emergence of several major FinTech players in India. Companies such as Razorpay and Zerodha have gained prominence, and the adoption of FinTech products has surged significantly.
Rai emphasises the substantial trust and capital invested in these platforms, along with the considerable amount of time users spend on them. He also acknowledges the importance of artificial intelligence (AI) in the financial sector, which reduces the need for human intervention, enhances security, and automates guidance for investors. India’s financial sector is well-positioned for the digital revolution, with further growth anticipated.
In conclusion, Kanan Rai affirms that India is ready for the digital revolution in the financial sector. The UPI boom has already delivered numerous benefits, and the widespread adoption of FinTech products showcases India’s preparedness for digital transformation. As the financial revolution continues to unfold, India’s position in the global FinTech landscape is expected to strengthen further.
