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How interoperability oiled the wheels of an M-pay revolution

Economic Times · 1y

The Reserve Bank of India's recent decision to make netbanking interoperable in the country has helped achieve a key target of fintech policymakers. Interoperability has benefited various payment ecosystems, including cards, UPI, and wallets, making them interoperable. This has resulted in expanded merchant payments and reduced costs for acquiring consumers and merchants. Interoperability has also led to increased innovation in payment products, while fintechs and banks have focused on distribution and user interface. Next steps include the use of Central Bank Digital Currencies (CBDCs) for large ticket transactions, as well as the integration of smaller banks into the digital payments ecosystem.