India’s fintech story has moved well beyond digital payments, with the Unified Payments Interface (UPI) emerging as a cornerstone of the country’s digital economy and financial inclusion. The next phase, however, will require the industry to extend the same scale and simplicity to credit, insurance, savings, investments and pensions.
The evolution of India’s fintech ecosystem and the road ahead were central themes at the Global Fintech Fest 2026 in Mumbai, where Prime Minister Narendra Modi addressed global innovators, investors and industry leaders last night.
The Prime Minister, making his third consecutive appearance at the event, highlighted the transformation of India’s financial landscape over the past decade and positioned fintech as an important enabler of the country’s ambition to become a developed economy.
UPI anchors India’s fintech transformation
A decade after UPI was launched, the platform has evolved from an ambitious digital-payment initiative into one of the most widely used components of India’s financial infrastructure.
Modi noted that any discussion on India’s fintech revolution would remain incomplete without UPI. The platform processed more than 24 billion transactions in August 2026 alone, underscoring the extraordinary scale of digital payments in the country.
UPI’s significance, however, extends beyond transaction volumes. According to Modi, millions of people who remained outside the formal banking system for generations have emerged as major participants in India’s digital economy.
He cited French President Emmanuel Macron’s observation that UPI is “not just a tech story, it is a civilizational story”, reflecting the platform’s broader impact on how Indians access and use financial services.
From domestic payments to global network
India is now looking to take the UPI model beyond its domestic success. The payment system is currently live in 11 countries, and the next objective is deeper integration with the domestic payment networks of partner nations.
Modi called for linking payment systems wherever there are significant Indian communities or substantial trade relationships. He pointed to the existing connectivity with Singapore as an example of the possibilities offered by interoperable digital payment networks.
Such integration could also reduce the cost and time involved in remittances. With India among the world’s largest recipients of remittances, lower transaction costs and faster transfers could provide a direct economic benefit to Indian families receiving money from abroad.
Fintech must move beyond payments
While digital payments have established the foundation, the Prime Minister said the next chapter of fintech must focus on expanding access to a wider range of financial products.
The industry, he said, needs to increase the reach of credit, insurance, savings, investments and pension products, particularly for sections of the economy that remain underserved by traditional financial institutions.
This shift could be particularly important for India’s vast micro-business ecosystem, where millions of small entrepreneurs have limited access to formal credit despite having demonstrable business activity.
Digital footprints can unlock small-business credit
Modi illustrated the opportunity through the example of a small shop owner whose digital transaction history can establish the viability of her business, even though the enterprise may not be large enough to qualify for conventional bank financing.
Fintech platforms can potentially analyse such transaction patterns and other economic activity to develop customised credit products for micro-enterprises.
“This is the next chapter of fintech,” Modi said, arguing that technology can help identify, anticipate and address the financial requirements of millions of small businesses.
UPI powering financial inclusion
The impact of digital payments is also visible in government-backed financial inclusion programmes.
Modi cited PM SVANidhi, which has brought millions of street vendors into the formal credit ecosystem. The scheme has helped improve access to formal finance and, according to the Prime Minister, contributed to an increase of more than 20% in the average annual income of beneficiaries.
The government has extended the scheme until 2030.
UPI, he noted, has played an important role in enabling the scheme and demonstrating how digital infrastructure can support grassroots economic activity.
Financial services for the gig economy
The next opportunity lies in extending this accessibility to India’s growing population of independent earners, including delivery partners and workers engaged in short-term or gig-based employment.
The Prime Minister called for savings, pension and insurance products to become as simple and accessible as making a payment through a QR code.
Such a transition could help bring workers with irregular incomes into the formal financial system while giving them greater access to long-term financial protection and wealth-building products.