Artificial Intelligence (AI) is poised to become a pivotal force in the next wave of digital payment growth, according to Dilip Asbe, Managing Director and CEO of the National Payments Corporation of India (NPCI). Speaking at Mumbai Tech Week 2026, Asbe, whose organisation oversees India's Unified Payment Interface (UPI) – a system now handling over 750 million daily transactions – outlined how AI could be instrumental in reaching a target of over a billion daily transactions, enhancing security, and expanding credit access.
Asbe highlighted that AI's applications would span various critical areas, from attracting new users and simplifying the onboarding process through voice and multilingual solutions, to robust fraud prevention and identifying illicit financial activities. Furthermore, AI is expected to play a significant role in providing credit to individuals and merchants with established digital footprints, thereby broadening financial inclusion. This vision underscores a global trend towards integrating advanced technologies into core financial services.
While the adoption of voice-based interactive systems is still in its early stages, Asbe believes that with the right use cases and improved accuracy of voice models, this interface could become a crucial component of the payment ecosystem. The NPCI itself launched a voice assistant-based interactive system in 2023, though its widespread uptake is yet to materialise. The emphasis on AI also extends to the potential for Indian financial institutions and fintech companies to develop their own 'small language models', leveraging the nation's extensive datasets to create highly specific and accurate AI tools.
Crucially, the NPCI CEO stressed that the successful integration of AI into finance hinges on establishing robust regulations and frameworks. He advocated for strong user protection measures and effective risk mitigation strategies, ensuring that systems can trace user instructions and consent in the event of any issues. This regulatory foresight aims to build trust and prevent potential misuse as AI capabilities become more sophisticated and pervasive within financial services.
Beyond technological advancements, Asbe also touched upon the competitive landscape within the UPI ecosystem. Despite the NPCI's efforts to foster competition, data indicates that Walmart-owned PhonePe and Google Pay collectively command over 80% of the market share. Asbe suggested that the emergence of viable commercial models for newer fintech players would be key to stimulating greater investment and increasing market diversity, moving away from the current concentration risk.