India’s heading for another transformation in digital payments, with NUEs expected to usher in new versions of UPI, blockchain-based settlement systems for digital currencies and remittances, and more efficient mechanisms for business transactions
May 06, 2021
8 Min Read
Blockchain-based settlement systems for enterprise transactions, remittances and digital currencies; innovations in offline retail payments; and an overhaul of legacy settlement systems.
Broadly, these are among the biggest transformations in digital payments that the so-called New Umbrella Entities, the newest buzzword in fintech, are expected to usher in.
Probably not far-fetched considering that among the six consortia that have applied to the Reserve Bank of India for NUE licenses are Google, Facebook, Amazon, Tata Group, and Reliance Industries.
The selected NUEs will build digital payments and settlements frameworks, or technology rails, similar to those of the National Payments Corporation of India, but with a wider array of applications.
The problem with existing settlement systems is they are built on legacy core banking solutions that make transactions inherently slow and sometimes unreliable.
The global and Indian giants in the fray are expected to implement back end transformations that, in turn, will vastly improve the front end payments experience for users.