PhonePe CEO Sameer Nigam backs DPDP Act, says no impact on business

At the Business Standard BFSI Summit, PhonePe CEO Sameer Nigam says the company established a dedicated data privacy function as early as 2018

PhonePe founder and Chief Executive Officer Sameer Nigam on Tuesday said the fintech major is not concerned about the impact of the Digital Personal Data Protection (DPDP) Act on its business operations, despite initially having reservations about the proposed framework.

 

Speaking at the Business Standard BFSI Insight Summit in Mumbai, Nigam said PhonePe had adopted a proactive approach towards data privacy, establishing a dedicated function to oversee the handling of customer information years before the legislation was introduced.

 

"We actually had a head of data privacy in our company before the DPDP Act ever got announced, as far back as 2018," Nigam said during a fireside chat with Business Standard's AK Bhattacharya.

 

The Ministry of Electronics and Information Technology (MeitY) notified the Digital Personal Data Protection Rules, 2025, on November 13, 2025. The rules require organisations handling personal data to provide clear notices explaining what information is being collected and the purposes for which it will be used. They also provide for individuals to withdraw consent and seek redressal for grievances.

 

Nigam acknowledged that PhonePe handles substantial volumes of sensitive customer information, making data protection an important consideration as the company expands its digital payments and financial services businesses.

 

"If the stated ambition is to actually deliver payments to a billion people and financial services to a billion people, you sure as hell have to have your act together," he said.

 

Why PhonePe was initially cautious about the DPDP Act

 

Nigam said the company had initially been apprehensive about the proposed data protection framework but became more comfortable with the legislation following consultations between the government and industry stakeholders.

 

"Initially, we were spooked. But I think MeitY has done a great job of inviting feedback and consultations," he said.

 

Nigam said PhonePe had participated in the consultation process, both independently and through industry representations, and submitted papers outlining its views.

 

Nigam said PhonePe has developed an elaborate consent-management mechanism allowing customers to understand and review how their personal information is being used.

 

"You can go into the app, go into your profile settings, see what you've given consent for," he said.

 

PhonePe on sharing user info with tech firms

 

Nigam also emphasised that PhonePe had taken a cautious approach towards sharing customer information with large technology companies, even where such arrangements could potentially strengthen its advertising business.

 

"Whenever I talk to the big techs, they just want all my data. And that's why we don't let Google or Facebook or others advertise on PhonePe. There's just no integration," he said.

 

Data protection should not restrict access to financial services: Nigam

 

Nigam said he did not believe the government's intention was to prevent companies from using customer data responsibly to improve access to financial products.

 

He pointed to the potential use of payment histories to enable individuals to obtain formal credit or more suitable insurance products.

 

"I don't think the DPDP Act intends to not let you get a formal loan, say, based on your own payments data or get a better insurance product," he said. "I think they (the government) want that. They're just saying, don't run crazy with it."