India has transformed into a fintech powerhouse, shifting from reliance on foreign technology to becoming a global exporter of innovative solutions. Key players like M2P, JusPay, and Hyperface are seeing increased demand for their infrastructure in Southeast Asia and the Middle East. Madhusudanan R of M2P emphasized the critical role of fintech infrastructure in enhancing banking efficiency. Initiatives like UPI have positioned India as a model for global markets, with companies ready to expand internationally and investors optimistic about long-term potential.
India has undergone a remarkable transformation in the realm of financial technology, evolving from a landscape dependent on foreign innovations to a dynamic hub for fintech solutions that are influencing markets worldwide. Prominent players in the industry, such as M2P, JusPay, and Hyperface, are witnessing a growing demand for Indian fintech infrastructure across Southeast Asia, the Middle East, and beyond.
“Traditionally, we have been a net importer of banking technology, but over the last decade, we have probably turned into a net exporter of technology, and there is a lot of pride in doing this,” stated Madhusudanan R, Co-founder of M2P, during his remarks at Moneycontrol's India Fintech Conclave in Mumbai on December 18.
Madhusudanan further highlighted the critical role of fintech infrastructure, likening it to the “plumbing” that supports banking innovations. “In the last 5-7 years, fintechs have focused on building systems of intelligence that augment traditional banking systems. Our role is evolving toward creating an intelligent layer, leveraging technology to make banks more efficient and smarter.”
India’s fintech sector has emerged as a global model of success, particularly through initiatives like the Unified Payments Interface (UPI). “A lot of markets now look up to India for what has happened with UPI,” he remarked. “It has evolved and scaled with a framework around legitimate data sharing, marking a big secular shift in global perceptions of Indian fintech.”
This impressive journey is not limited to domestic achievements; Indian fintech infrastructure companies are expanding their reach internationally. “In banking and financial sectors, we will be the first where product capabilities will go out and put India on the map,” Madhusudanan added.
Sheetal Lalwani, Co-founder and COO of Juspay, discussed how India’s fintech innovations extend far beyond its borders. “Our product, HyperSwitch, caters to Western markets and operates like Linux for payments,” he explained.
While Juspay remains deeply rooted in India’s innovation landscape, it is also tapping into growing opportunities in Southeast Asia and the Middle East and Africa.
Juspay also played a key role in developing BHIM, India’s flagship UPI application. Reflecting on BHIM’s potential to compete globally, Lalwani noted, “I believe anything is possible, but it requires many stars to align.”
As global markets turn to India for inspiration, the nation’s fintech players are demonstrating their commitment to not just domestic growth but also international influence, solidifying India’s reputation as a leading exporter of technology and a beacon of financial innovation.
Aishwarya Jaishankar, Co-founder of Hyperface, emphasized her company's readiness to engage with global markets. “India’s best core banking systems are globally competitive,” she stated. “This is definitely India’s time to conquer global fintech markets, and it’s on our roadmap too.”
From an investment perspective, fintech infrastructure companies are in a unique position to tackle fundamental, systemic challenges.
“These are the players who build products from the foundational layer,” said Nruthya Madappa, Partner at 3One4 Capital. “They focus on the longer game, which is why we’re most excited about them.”
Madappa sees significant promise in startups that are innovating within the collections space, noting their intelligent approach to integrating technology. “Consumer needs are growing exponentially, and there’s still a long way to go,” she added.
Discussing the exciting developments within fintech infrastructure, Jaishankar from Hyperface highlighted the need for innovative banking products. “We’re excited about the credit line stack, which can be used on a card, as a UPI line, or as a standalone product,” she explained.
With only 5% of Indians currently holding credit cards, the introduction of credit lines through UPI has the potential to revolutionize the financial landscape in India, paving the way for a brighter future in fintech.
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