India's digital payments ecosystem is entering a new stage, with the Unified Payments Interface (UPI) already crossing 750 million daily transactions. At Mumbai Tech Week 2026, Dilip Asbe, managing director and CEO of the National Payments Corporation of India, said artificial intelligence could become central to the system's next wave of expansion.
According to Asbe, the next phase will focus on three priorities: bringing in new users, strengthening fraud detection, and improving access to credit for people and merchants with digital transaction histories. He said AI can also support voice-based and multilingual tools, making onboarding simpler across India's diverse user base.
AI, voice tools, and financial access
Asbe noted that voice interfaces are promising, but still in an early stage and need higher accuracy before they can scale widely. NPCI introduced a voice assistant-based payment experience in 2023, and he believes such tools could become more important as practical use cases mature.
He also pointed to the growing role of AI in finance more broadly, saying that a strong regulatory framework will be essential for safe adoption. In his view, systems should be designed to respect user consent and clearly track instructions when AI agents are involved in financial actions.
Beyond large models, Asbe sees room for India's banking and fintech ecosystem to build small language models tailored to local needs. He said datasets available in the country's payments network could help create tools that are more precise and purpose-built. NPCI's FIMI model, launched to help resolve user disputes, is already serving over a million users and continues to expand.
Competition in the UPI market
Asbe also said healthy competition among UPI apps remains important. While the market is still dominated by a few major players, he believes new entrants can grow if they find sustainable business models. NPCI has also developed BHIM as a secure, sovereign alternative, with transaction volumes rising even as its market share remains modest.
With AI, regulation, and product innovation moving together, India's payment ecosystem could become a model for the future of digital finance.