Fintech firms eye investments in 'switching' as UPI's scale picks up

Fintech companies are eyeing on a critical piece of payments -- switch -- as India’s real-time payments system Unified Payments Interface (UPI) grows its dominance. 

 

Companies are investing in fintech firms that specialise in switching services, driven by the growing dominance of UPI, the absence of merchant discount rates (MDR) on the platform, and expectations that credit transactions with intrinsic value will increasingly move to real-time payment rails.

 

These investments in critical technology stacks enable fintechs to process transactions faster, with higher success rates, while handling large volumes with greater stability.

 

This is important for high-voltage transaction hours such as