Harshil Mathur, CEO of Razorpay, believes that regulations in India's fintech sector have made the country a global leader, with Unified Payments Interface (UPI) services being a prime example. He emphasizes that regulations play a vital role in fostering innovation, financial inclusion, and improving financial literacy.
In 2023, UPI transactions exceeded 100 billion, showing a 60% growth compared to 2022. The total value of these transactions reached around Rs 182 lakh crore, a 44% increase from the previous year. Mathur notes that India's Digital India Stack is now a global benchmark, providing a competitive edge for businesses.
Regulatory bodies like the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Securities and Exchange Board of India (SEBI) oversee fintech in India. The RBI recently introduced a draft framework for Self-Regulatory Organizations (SRO) in the fintech sector, aiming for a balanced approach to regulation.
Mathur stresses the importance of regulatory insights for companies in the growing fintech industry, as compliance ensures trust and protection for the entire financial ecosystem. He mentions that as the digital person-to-merchant payments market in India is projected to reach $4 trillion by 2030, companies need to uphold high responsibility for compliance.
Razorpay, with an annualized total payment volume (TPV) of $150 billion, recognizes the potential of startups and enterprises, emphasizing the need for intelligent real-time financial infrastructure to meet evolving payment and banking needs.
India's fintech startup ecosystem ranks fourth globally in funding, and the enterprise fintech industry is expected to reach nearly $20 billion by 2030, according to a report by Chiratae Ventures and The Digital Fifth. Investments in financial technology across various segments are anticipated to see substantial growth over the next decade.