India’s Fintech Journey: Progress and Future Ahead

Introduction: A Decade of Progress, A Century of Potential

India’s fintech sector has evolved dramatically in the past decade, with digital wallets, UPI, and instant loans transforming how citizens interact with money. Yet, according to MobiKwik cofounder Upasana Taku, the journey is only beginning. In a recent interview, she emphasized that while India has achieved foundational digital infrastructure, only 10% of the population uses multiple financial products. This signals that a vast, untapped opportunity remains to democratize access to savings, insurance, credit, and investments for the broader population.

Digital Payments: The First Frontier of Financial Transformation

Taku highlighted how digital payments became the entry point for many Indians into the formal financial system. The surge in UPI transactions and wallet usage—especially post-demonetization and during the COVID-19 pandemic—laid the groundwork for fintech growth. MobiKwik, once known predominantly for wallet-based payments, has expanded into BNPL (Buy Now, Pay Later), insurance distribution, credit lines, and merchant payments. However, she notes that financial services penetration is still shallow, and multi-product adoption is essential to unlock long-term sectoral value.

A Vision for 10X Growth: Diversification and Depth

Looking ahead, Taku expressed confidence in achieving tenfold growth in the next few years by moving beyond just payments. MobiKwik’s roadmap includes a deeper push into personal finance, including digital lending, wealth management, small-ticket insurance, and embedded finance solutions. As the company scales, the goal is not just user acquisition but increasing wallet share per customer by becoming a one-stop shop for all things finance. In her view, consumer trust, intelligent product bundling, and real-time credit risk models will define the next wave of fintech innovation.

Profitability Over Growth-at-Any-Cost

In a break from the earlier startup mindset that prioritized user growth over profitability, Taku emphasized that MobiKwik is now focused on unit economics and sustainable profitability. As macroeconomic pressures such as inflation and global rate hikes challenge consumer spending, and regulatory tightening by the RBI increases compliance costs, only financially sound companies will thrive. She sees this as an opportunity to build with resilience, as investors now seek innovation, monetization clarity, and disciplined execution.

Regulatory Landscape: Challenge and Catalyst

The RBI has been increasingly active in shaping the fintech space, introducing frameworks around digital lending, data privacy, KYC norms, and account aggregators. While some players view regulations as a barrier, Taku considers them a necessary filter to separate serious fintech builders from opportunistic entrants. She calls for more dialogue between the industry and regulators to balance innovation and consumer protection. Taku notes that India’s success in fintech will depend on an inclusive, transparent, and compliant ecosystem.

Enhancing Access to Financial Products: Inclusion is the Next Key Progress

Taku stressed the need for financial inclusion beyond metro cities, pointing out that Tier 2, 3, and 4 towns still lack access to basic financial products. She believes that language localization, simple interfaces, and AI-driven customer support are crucial to onboarding the following 300 million users. Moreover, partnerships with NBFCs, banks, and local retailers can be powerful enablers to reach India’s underbanked population. She envisions the fusion of financial technology and regional advancements as a driving force behind the breakthroughs of the coming decade.

The Road Ahead: Collaboration, Innovation, and Impact

India asserts that the fintech sector, already among the largest in the world by transaction volume, is entering a more mature and mission-driven phase. She envisions a future where fintech simplifies daily transactions and empowers individuals with economic agency, digital credit history, and access to growth capital. Collaboration with regulators, traditional banks, and technology startups will be key to building a decentralized, secure, and inclusive financial ecosystem. The race is no longer about scale alone—it’s about impact, trust, and transformation.

Conclusion: A Country of a Billion Wallets and Billions of Dreams

India’s fintech journey, while impressive, is still in its adolescence. As Upasana Taku rightly points out, building for Bharat—the broader, diverse, and ambitious population—is the next great challenge and opportunity. MobiKwik and similar companies are leading the way as digital platforms and in promoting financial dignity. The path ahead will require courage, compliance, and creativity, but if done right, India could become the most inclusive fintech ecosystem in the world.

The image added is for representation purposes only