The Unified Payments Interface (UPI) has emerged as a transformative force in India's digital landscape, revolutionizing the way financial transactions are conducted. Now, its influence extends far beyond the nation's borders, shaping global conversations around economic growth, entrepreneurship, and job creation. A recent webinar, titled "Times Ascent - Driving Job Creation Through Digital Payments," organized by the Times of India, showcased how UPI is propelling India's digital economy to new heights.
With industry stalwarts like Atul Saigal, Senior Vice President - Commercial Cards, Axis Bank, Dr Sankarshan Basu, Professor in the Finance and Accounting Area at the IIM Bangalore, Girish Krishnan, Director Payments, Rewards, BigData, Merchant Services, Amazon Pay, Zubair Ulla, Head – Digital Channels, Ujjivan Small Finance Bank and Moderated by Akhil George, TOI Business Editorial, the event provided invaluable insights into UPI's impact on various sectors.
Insights from Industry Leaders: Unveiling the Impact of UPI on Job Market
“Indeed, UPI has been a game-changer, offering a level playing field for digital transactions. The government-backed digital infrastructure has instilled trust from day one, fostering rapid adoption and innovation. The simplicity of UPI empowers users to conduct transactions seamlessly across various platforms, promoting financial inclusion and efficiency." – said Girish Krishnan.
Navigating the Payment Landscape: UPI's Impact on Credit and Debit Cards
"UPI's convenience and digital empowerment are reshaping payment ecosystems, leading to a harmonious coexistence of traditional and digital methods. As we navigate this transformative landscape, the future holds promise for seamless transactions and enhanced financial empowerment." – Zubair Ulla
Zubair highlights a decline in debit card usage, especially in e-commerce, favoring UPI instead. While credit cards offer extended credit periods, UPI's integration with credit cards sparks consumer interest. He envisions a coexistence of payment methods, with UPI driving transformative changes in the payment landscape towards convenience and financial empowerment.
Unveiling the Role of Digital Payments in Job Creation
During the webinar, Atul Saigal and Girish Krishnan highlight the role of digital payment systems in catalyzing job creation, emphasizing both direct and indirect employment opportunities. Atul notes that UPI has been instrumental in driving the digital payment revolution, leading to increased efficiency and acceptance across consumer and business sectors, thereby boosting cash flows for businesses and fostering expansion. Moreover, the proliferation of fintech firms in the payment sector has directly employed around 80,000 individuals and indirectly contributed to over 200,000 jobs.
Girish explores the secondary effects of digital payments on job creation and economic growth, noting that UPI serves as a nexus connecting consumers and service providers, leading to a wide range of employment opportunities. He also highlights how the increasing demand for digital payments compels merchants to adopt technology, resulting in enhanced efficiency and integration into the digital economy.
Exploring Emerging Tech Roles in the Digital Payment Sector
"Technology-driven financial inclusion is reshaping the digital payment sector, democratizing access and catalyzing economic growth." - said Dr Sankarshan
Dr. Basu draws parallels between the digital payment revolution and the transformative impact of electronic stock exchanges like NSC on stock market trading. He highlights UPI's democratizing effect on financial access. Additionally, Dr. Basu underscores the importance of data analytics in developing credit scoring models and predicting financial risks, which fosters financial resilience. He also discusses the growing demand for cybersecurity professionals to protect consumer data and emphasizes the integration of digital payments across various sectors, driving employment growth.
The Rising Tide of Digital Transactions
Atul emphasizes the need for strong risk management systems in financial institutions and fintech firms amidst the rapid growth of digital transactions. He stresses the importance of dedicated teams to combat fraud and maintain the security of digital financial ecosystems. In response to increasingly sophisticated cyber fraud tactics, FIs and fintechs must continuously strengthen their cybersecurity defenses.
Zubair highlights the crucial role of consumer awareness in fighting cyber fraud. He emphasizes the importance of information security specialists in mitigating risks associated with digital payments and underlines the need for financial institutions and fintech firms to bolster their cybersecurity defenses against evolving threats.
Navigating the Transformative Landscape of Financial Roles in the Digital Era
In the wake of the digital revolution, the financial sector finds itself at the forefront of transformation. Dr. Sankarshan said - "In the digital era, technology and data redefine the landscape of finance, empowering decision-making, mitigating risks, and highlighting the critical importance of cybersecurity."
He mentioned that in today's digital era, institutions must invest in talent and cybersecurity. With digital banking on the rise, the need for data security experts is booming. Equipping themselves with skilled staff and robust security measures enables institutions to thrive in this increasingly digital financial environment.
Empowering MSMEs Through Digital Lending: A Deeper Insight
"Atul highlights the transformative potential of digital lending for MSMEs, emphasizing the collaborative efforts between fintech companies and traditional institutions in bridging the credit gap and driving economic empowerment."
Atul delves into the transformative impact of digital lending on small and medium enterprises (MSMEs), addressing their significant credit gap. Fintech solutions leverage data and digital payment infrastructure to bridge this divide, fostering economic growth and financial inclusion for underserved MSMEs.
Shaping the Future of FinTech: Insights from Industry Leaders
"In the realm of FinTech, AI holds the key to revolutionizing the industry, with data from platforms like UPI providing invaluable insights into consumer behavior, paving the way for predictive models and personalized financial services."
Girish emphasizes AI's pivotal role in revolutionizing FinTech by leveraging data from platforms like UPI to understand consumer behavior, enabling predictive models and personalized financial services, transforming the industry.
Empowering Financial Inclusion through Innovative Technology: The UPI Story
Atul highlights Axis Bank's efforts to empower MSMEs through digital solutions, including an API-driven payment stack and streamlined digital onboarding, enabling seamless financial management for MSMEs across India.
Girish discusses Amazon Pay's innovations, such as the interoperable Amazon Pay Balance wallet linked to UPI, addressing issues like UPI failures and offering an Auto Load feature for enhanced transaction success rates and security.
Zubair emphasizes Ujivan's focus on financial and digital inclusion, particularly targeting non-tech-savvy customers with the HelloUG1 mobile banking app. This user-friendly app has successfully onboarded over 500,000 first-time digital users with features like voice guidance and simplified transactions.
Conclusion
UPI stands at the forefront of innovation, propelling economic growth, nurturing entrepreneurship, and transforming job markets in India and globally. Its simplicity, accessibility, and transformative capabilities are revolutionizing digital payments, opening doors to unprecedented financial inclusion and empowerment. In the evolving digital landscape, UPI's impact will continue to shape the future of finance, driving progress and prosperity. From fostering jobs in fintech to catalyzing growth across industries, UPI is integral to India's expanding workforce. As digital transactions soar and financial access broadens, UPI's role in creating job opportunities ensures a future of economic empowerment and abundance.
Disclaimer: This article has been produced on behalf of Times Red Cell by Mediawire team.
