How Are India’s Fintech Firms Empowering Merchants and MSMEs?
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Synopsis
Discover how India's fintech landscape is revolutionizing the digital economy. Finance Minister Nirmala Sitharaman highlights the significant role of fintech firms in enhancing the digital public infrastructure and supporting local merchants and MSMEs.
Key Takeaways
- Fintech firms are pivotal in enhancing India's Digital Public Infrastructure (DPI).
- Significant growth in UPI transactions represents a shift in digital payment preferences.
- Engagement from government officials like the Finance Minister highlights the importance of innovation.
- Pine Labs continues to lead in simplifying digital payments across regions.
- RBI's flexible transaction limits enhance user convenience in UPI payments.
New Delhi, May 27 (NationPress) Union Finance Minister Nirmala Sitharaman emphasized that India’s fintech companies are instrumental in advancing the nation's digital public infrastructure (DPI) and are significantly empowering merchants as well as micro, small and medium enterprises (MSMEs).
The Finance Minister visited the headquarters of Pine Labs, a notable digital fintech firm located in Noida, where she engaged with employees and discussed innovative technologies.
She recognized the pivotal role of India’s fintech firms in enhancing the country's Digital Public Infrastructure (DPI) and facilitating secure, inclusive financial services for both merchants and MSMEs, according to a post from the Nirmala Sitharaman Office on the X social media platform.
B. Amrish Rau, CEO of Pine Labs, expressed his excitement in an X post, stating it was "an exhilarating and remarkable day... The atmosphere was vibrant, and our FM was deeply engaged in her conversations and technical discussions".
Pine Labs serves as a merchant commerce omnichannel platform operating throughout India, the Middle East, and Southeast Asia, specializing in streamlining digital payments and assisting businesses in scaling fintech solutions.
In addition, UPI QR codes have shown remarkable growth within the digital payments framework for the financial year 2024-25, soaring by 91.5 percent compared to the previous fiscal year, reaching 657.9 million.
The number of banks utilizing UPI continues to rise, reaching 668 in April, which is projected to enhance the value of transactions, as noted by RBI data.
UPI has emerged as the preferred method for digital transactions in India, with nearly 80 percent of digital payments in the country conducted via UPI during the financial year 2024 (FY24), as reported in the Reserve Bank of India’s annual report.
The RBI has also introduced flexibility in adjusting transaction limits for UPI in-person merchant payments, allowing NPCI to modify limits based on user requirements, all while implementing necessary safeguards to enhance convenience.
Furthermore, India’s digital payments landscape experienced robust growth in the latter half of 2024, fueled by the Unified Payments Interface (UPI), mobile payments, and cards, according to Worldline India’s Digital Payments Report.
Point of View
It is evident that India's fintech revolution is not just a trend but a vital component in empowering small businesses and improving the digital economy. The active engagement of key players like the Finance Minister reinforces the commitment to fostering innovation and inclusivity in financial services.
NationPress
03/09/2025
Frequently Asked Questions
What is the role of fintech firms in India?
Fintech firms in India are crucial for enhancing digital public infrastructure and providing secure financial services to merchants and MSMEs.
How has UPI influenced digital payments in India?
UPI has become the dominant method for digital transactions in India, accounting for nearly 80% of all digital payments in FY24.
What advancements have been made in digital payments recently?
Digital payments have surged significantly, with UPI QR codes experiencing a 91.5% growth in FY 2024-25, indicating robust adoption.
What is Pine Labs, and what do they offer?
Pine Labs is a fintech company that provides a merchant commerce platform, simplifying digital payments and helping businesses scale their fintech solutions.
What initiatives have been taken to improve UPI transactions?
The RBI has allowed flexibility in transaction limits for UPI payments to better cater to user needs, enhancing convenience.
