Reeju Datta, Co-founder, Cashfree Payments
2025 wasn’t just a milestone year for India’s digital payments ecosystem, it was the year India proved that financial innovation can be both massively inclusive and globally scalable. UPI cemented its evolution from a domestic payments stack into one of the world’s most interoperable, real-time payment rails. With innovations like biometric payments, Credit on UPI, UPI Lite, among others, India showed how technology, when paired with the right regulatory guardrails, can expand access without compromising trust. Tier-2 and Tier-3 India didn’t just come online; they became active contributors to the country’s formal financial economy. The year also witnessed AI take centre stage with conversational and agentic payments being piloted, making selling and buying online truly seamless, intelligent and fast. Another big highlight of the year was the growth and momentum at which Indian exporters scaled their global sales, and the entry of global SaaS players to sell to India as a high intent consumer market. This truly borderless payments experience has put India on the global pedestal as a formidable e-commerce hub.
As we step into 2026, the next era of growth will be defined by interoperability across platforms and borders, embedded financial experiences woven seamlessly into every product, and an AI-first ethos that makes payments not just faster, but safer, smarter, and fundamentally more user-centric. At Cashfree Payments, we’re committed to building the secure, fraud-proof, globally connected payments infrastructure that powers every kind of business, startups, SMEs, and enterprises in India and beyond.
Pushkar Mukewar, Co-founder & CEO, Drip Capital,
2025 has been a defining year for exporters, whether small manufacturers or mature, mid-market companies, are operating in a very different trade environment compared to even two years ago. Documentation gaps, extended payment cycles, currency fluctuations, and tariff-driven pricing shocks are creating uncertainty, especially for businesses that rely on predictable working capital. This is the single biggest constraint we see: no demand, but liquidity and risk management.
We’ve also seen a shift in the way Companies think about financing. Exporters are seeking Structured, Real-time Financing Options that keep pace with the Global Supply Chain rather than the older Banking Process. As digital trade platforms scale and lender participation broadens, including global banks, development institutions, and private capital, access to funding is becoming more efficient and more transparent.
Looking ahead at 2026, enabling seamless financing won’t just be about deploying capital. It will require shared data frameworks, interoperable systems, and deeper collaboration between regulators, lenders, and technology platforms will be critical. If the industry continues to move in this direction, we can unlock tremendous value for exporters and strengthen India’s role in global trade.
Sundeep Mohindru, Founder & Promoter, M1xchange ,
“2025 has been a year in which India has focused on strengthening economic fundamentals. Maintaining a steady level of growth throughout uncertain global conditions, while creating a more organised business ecosystem that is now better equipped to manage any disruptions that come up along the way. The growth of MSMEs has resulted from improved regulatory frameworks, improved access to formal sources of credit, and the wide usage of all digital channels for invoicing, payments, and compliance. However, there still exists a large MSME credit gap, between ₹25 lakh crores and ₹30 lakh crores; therefore, in order to close that gap, businesses need to be able to access working capital more reliably and easily. Technology has begun to support these gaps by providing better tools for improved credit assessment and providing verified transaction information, while providing lenders with visibility to cash flow.
Looking ahead, the priority will be depth rather than breadth. Digital lending will continue to grow; however, risk management and compliance will continue to shape how that growth occurs. The TReDS initiative provides an example of how registered trade information and institutional investors can create additional access to capital for small suppliers without increasing their level of leveraged debt. If we continue to onboard MSMEs into the formal channel of trade finance, including TReDS, as well as streamline processes from end to end, India could see a substantial increase in its exports as a result.
The growing digital integration of MSMEs through 2026 will be vital. Additional participation from Public Sector Undertakings (PSU) on TReDS will increase liquidity for smaller suppliers and offer greater access to deep-tier financing, enabling the flow of capital directly to MSMEs in all tiers of the value chain, rather than only to top-tier MSMEs. Additionally, the acknowledgement and acceptance of alternative credit assessment (CAE) methodologies will allow for the expanded access to formalised credit, particularly for first-time borrowers and MSMEs in the services sector.”
Anand Kumar Bajaj, Founder, MD and CEO, PayNearby
2025 has been a year of expanding access and strengthening trust across India’s last mile. It showed us that when technology and local trust come together, economic participation grows meaningfully. UPI remained at the centre of this shift, contributing to almost 85 percent of all digital transactions. Its adoption is rising rapidly across rural Bharat as well, where assisted digital ecosystems are enabling millions to transact with confidence. The growing reach of UPI continues to capture global attention, reinforcing India’s position as a leader in real-time payments.
This year also brought important policy advancements. The government’s focus on digital empowerment through tax reforms, MSME-led schemes, expansion of Digital Banking Units, and greater recognition of Business Correspondents has helped deepen financial access across Bharat. The rollout of GST 2.0 has eased compliance for smaller businesses, while updated authentication standards have made digital transactions safer for millions of users.
2026 will see the convergence of AI-led payments, increased digital trust, and deeper financial participation. Fintechs will need to intensify their support for retail & MSMEs as they adapt to a fast-evolving, technology-driven economy. In the coming year, we expect sharper focus on expanding digital adoption across Bharat, stronger authentication frameworks, and clearer compliance pathways for small businesses.
Jayatri Dasgupta, CMO, PayNearby and Program Director, Digital Naari
2025 has been a defining year in India’s development journey – a year where the conversation moved from empowering women to recognising women as powerful economic contributors in their own right. Rural Bharat has led this shift. With female employment rising sharply, we see that when opportunities reach women at the grassroots, families become more secure, communities become more confident, and progress becomes self-sustaining.
Across our network, this change is deeply visible. Women banking correspondents continue to build trust where it matters most. Female customers transact almost 66 percent higher with women agents, showing how comfort, relatability, and local trust can unlock meaningful economic participation. More importantly, each Digital Naari is shaping steady, dignified income for her household while creating access for her community.
As the Government accelerates its ambition to enable three crore Lakhpati Didis, our work aligns closely with this national vision helping women gain financial capability, access income-generating opportunities, and transition from informal roles to sustainable livelihoods rooted in dignity and confidence.
Looking ahead to 2026 and the road to Viksit Bharat 2047, deeper partnerships will be essential. Policymakers, financial institutions, fintechs, corporates, and community networks must come together to strengthen skill development, expand access to affordable credit, and formalise women’s participation in the economy. India’s progress will ultimately be shaped not only by how far women go, but by how strongly we support their ability to lead, earn, and influence the future of their communities.
Akshay Mehrotra, Managing Director and Group CEO, Fibe
India’s fintech industry is evolving at a breakneck pace and the year saw innovations in UPI with the platform introducing enhanced features for ease of use and transparency, simplified credit access and the landmark GST rationalisation, all contributing towards a wider democratization of financial services. Alongside the ecosystem, consumers have evolved too. They are more informed, more tech savvy and expect seamless experiences. They are looking for solutions that make it easier for them to split their bills, apply for credit or manage their money.
We are seeing interesting behaviour among young consumers who are increasingly investing in self growth and self care. Education financing for upskilling and specialised courses continues to rise. There is also strong demand for credit in categories such as cosmetic procedures, dental care, wellness treatments and other lifestyle enhancements that support their confidence, careers and overall quality of life. We expect these categories to grow further as personal investment becomes a mainstream priority.
This year also marked a shift in how technology and policy are shaping financial services. Regulatory clarity from the RBI, wider adoption of Account Aggregator, stronger consent based data flows and the rise of embedded finance are all contributing to a more transparent and responsible ecosystem. At the same time, advances in AI based underwriting and real time data signals are helping lenders better understand risk, improve decision making and support the unsecured segment as it steadily recovers from the recent credit cycle. These innovations are ensuring that growth remains sustainable and customer friendly.
As we close the year, the trajectory is clear. Fintech in India is no longer limited to digital payments and basic credit access. It is about empowering young India, enabling aspiration and strengthening financial inclusion. Fintech companies that can deliver trust, intelligence and convenience will define the next chapter of India’s financial evolution.
Vikas Tarachandani, Co-founder, SURE
2025 turned out to be an important year for India’s housing finance market, especially in Tier-1 cities. We saw a clear shift toward higher-value homes, with salaried urban individuals increasingly purchasing properties priced above ₹1 crore and the conversations shifting from simply “buying a house” to “investing in a better life.” While the overall home sales stayed measured, the value of transactions continued to rise- a trend highlighted by Knight Frank across major cities.
For many who were waiting on the sidelines, the more supportive interest rate environment of 2025 felt like an open door. Lower rates turned the “maybe one day” conversation into “let’s do this now.” It brought financially prepared families back into the market, confident that they could afford the lifestyle they have worked so hard for. According to CareEdge, India’s Housing Finance Industry is projected to grow at a CAGR of 15–16% by 2029–30, supported by the expectation that nearly 40% of India’s population will live in urban areas by 2030
Perhaps the most inspiring change is how people are handling their debt. Today’s homeowners are digitally savvy and proactive. They aren’t just taking loans and forgetting about it; they are using digital tools to track their progress and optimize their finances. As we move forward, the combination of financially prepared buyers and a stabilizing credit ecosystem suggests a mature, sustainable path for India’s retail credit market where transparency and borrower-side intelligence will be just as important (if not more) than access to credit itself.
Savita Vashist, Co-founder and Executive Director, NPST
India’s digital payments ecosystem is not merely expanding; it is undergoing a profound evolution characterised by deeper capability, broader inclusion, and more robust infrastructure. We observe four defining shifts that are charting the course ahead
Financial Inclusion via Voice-Led Payments: RBI aims to expand India’s digital payments user base to one billion by 2029, implying nearly three-fold growth from current levels. Achieving this scale will depend on inclusive solutions that address structural access gaps. India still has close to 300 million feature-phone users, many on 2G networks, who remain outside app-based UPI. Innovations such as UPI 123 are beginning to close this divide. By enabling voice-led transactions, these inclusive solutions extend digital payments to users without smartphones and to those hesitant to engage with conventional digital interfaces, advancing the ecosystem toward genuine financial ubiquity.
The Globalisation of UPI: The international adoption of UPI is rapidly forging a foundation for faster, more inclusive, and dramatically more efficient cross-border payment flows. This creates a powerful new corridor for commerce and remittances.
Reinforcing the Banking Layer: The introduction of Banking Connect by NBBL is fundamentally strengthening the underlying banking access layer. It provides a secure and consistent interface that effectively modernises the net banking experience across diverse institutions, enhancing overall reliability.
Proactive Fraud Management: Rising fraud, with 2.4 million cases in FY25, proves that the traditional rules-based security is obsolete against sophisticated threats. To counter synthetic merchants and complex patterns, we are now pivoting to an AI-powered defence posture. This relies on Machine Learning for real-time behavioural intelligence and proactive risk management. Embedding this security ensures sustained user trust and is fundamental to the continued scaling of India’s digital economy.
As the digital payments ecosystem advances, our core responsibility is to ensure that innovation and trust advance in lockstep. Only by doing so can we ensure that India’s payments architecture continues to serve as a global benchmark for accessibility, security, and scale.
Bhavin Patel, Co-Founder & CEO, Vartis Platforms & LenDenClub
2025 has marked a year of reset for the digital lending ecosystem. After two years of intense regulatory shifts, the industry has now reached a point of clarity, stability, and shared understanding with regulators. This has been a year of adapting, rebuilding, and proving that strong compliance, transparent product flows, and customer-first models can create a healthier landscape for both borrowers and lenders alike.
As we look ahead to 2026, I believe it will be the growth year for digital lending in its new form. This will serve as the foundational year where benchmarks are set, and long-term models begin scaling sustainably. For P2P lending in particular, lender confidence is at an all-time high, and demand continues to outpace the supply of borrowers. With stable regulations, predictable cash flows, and clearer risk assessments, lenders today are prioritizing consistency more than ever.
I expect consumer credit and small business loans to drive momentum in 2026, as digital lenders double down on segments where underwriting maturity and capabilities have been built over the past few years. AI will play a pivotal role in accelerating this shift, enhancing credit models, streamlining reconciliation, transforming support operations, and enabling faster, more seamless customer journeys. The primary beneficiaries will be quality borrowers who will experience quicker approvals and more efficient processes.
For P2P platforms, 2026 represents an opportunity to stay true to the marketplace model, building trust through transparency, robust technology, and responsible growth. While we’re still tapping into only a fraction of India’s credit demand, the next two years will see significant expansion as more retail investors discover P2P lending as a credible alternative for fixed income.
Munindra Verma, CEO of M1 NXT,
“By the end of 2025, one thing has become undeniably clear that cross-border trade desperately needs financing that’s quick and transparent. While the export market continues to grow for India, many MSMEs face significant challenges related to obtaining access to working capital due to documentation issues, a disjointed supply chain journey, a lack of available credit, and counterparty risk. And the recent tariff shocks across major trade corridors, and smaller exporters operating on limited cash reserves, are feeling genuinely squeezed.
Mid-to-large exporters are also responding to a shifting landscape. Their scale enables negotiation power; however, the fluctuation in prices, compliance requirements, and geopolitical shifts is impacting how they manage their production cycles and how they finance the working capital cycle. For them, getting faster access to competitive global financing isn’t just nice anymore; it’s essential. They need it to protect their profit margins, keep their cash flowing smoothly, and stay reliable for their international customers. Here’s where things are actually starting to change. Digital trade platforms and regulated ITFS systems are tackling these problems head-on. Exporters now get real-time visibility into their shipments, faster processing times, and access to a much wider network of lenders, insurers, and buyers worldwide. Through the increased usage of structured documentation and standardised processes, exporters will find it easier to predict their cash flow and therefore will be in a stronger position within the worldwide marketplace.
Through 2026 and beyond, collaboration between industry stakeholders, regulators, and financial institutions will be essential for participants in the international trade finance marketplace. A cooperative approach to managing compliance risk, data sharing, and simplifying processes will allow for greater stability, increased access to, and greater trustworthiness of, international finance for international trading purposes.”