UPI open architecture limits fintech growth in other fin services: Moody's

Despite their dominance, fintechs do not have exclusive access to transaction data on the UPI as banks play a critical role in executing UPI transactions

Fintech firms are ruling the digital payments space in India. Yet, the open architecture of Unified Payments Interface (UPI), which helps in instant transfers, limits advantage to them in expanding into other financial services, according to rating agency Moody’s.

Also, the country's major banks are also intensifying the competition by significantly expanding their digital offerings.

Srikanth Vadlamani, a Moody's vice president and senior credit officer, said the UPI's open architecture means that a large user base does not necessarily make a particular service provider more competitive than others on the system.

Large private-sector banks and the industry leader, the State