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A pivotal new SBI report released today has sparked fresh debate on India’s digital finance trajectory, urging the urgent need for a ‘Desi Counter Intuitive’ UPI app—a fully indigenous Unified Payments Interface platform—to nurture innovation, safeguard national data, and alleviate growing foreign dependence in the rapidly expanding digital payments sector.
Key Highlights
State Bank of India’s latest report calls for development of an entirely homegrown, dominant UPI app
Current UPI ecosystem is largely controlled by third-party app providers (TPAPs) with strong foreign ownership, notably PhonePe, Google Pay, and Paytm
Dependence on foreign-backed platforms for critical transaction data may hinder innovation and challenge national priorities
Indigenous platform seen as essential for data sovereignty, privacy, and fintech growth aligned with India’s unique needs
Current State of the UPI Ecosystem
As of July 2025, PhonePe leads the market with a staggering 8,931 million transactions valued at Rs 12.2 lakh crore
Google Pay is second, handling 6,923 million transactions worth Rs 8.91 lakh crore, followed by Paytm at 1,366 million transactions totalling Rs 1.43 lakh crore
Other players like Navi and super.money control lower volumes, highlighting high market centralization among the top 3
The SBI report notes this concentration could stifle India-centric innovation and place critical digital payment data beyond sovereign control
Why a “Desi” UPI App Is Essential
The report warns that excessive reliance on non-Indian platforms for digital transactions poses a long-term threat to data sovereignty and secure management of financial information
Transaction data is now a critical engine powering innovations in digital lending, insurance, micro-credit, and broader fintech services
A homegrown UPI app would enable customization for local consumer habits, regulatory priorities, and would ensure sensitive data remains within India’s jurisdiction
Risks of Current Market Structure
The current dominance of foreign platforms could impact India’s ability to steer its fintech future amid evolving global data protection norms
The report highlights risk of national data being leveraged for non-India-centric interests, with innovation potentially stalling as India-specific consumer requirements are overshadowed by global product roadmaps
Policy Recommendations and Way Forward
SBI’s report pushes for accelerated development of a fully indigenous UPI solution, built by and for Indian stakeholders
Such a move will empower policymakers to leverage transaction data for tailoring financial products, enforcing robust security protocols, and supporting digital inclusion across urban and rural landscapes
Calls for collaboration among banks, fintechs, and government technologists to build an app catering solely to India’s demographic and regulatory realities
Market Buzz and Potential Impact
The report’s recommendations arrive as UPI continues breaking global records, accounting for over 19.47 billion transactions worth Rs 25.08 trillion in July alone
A fully Indian app may boost public trust, support Indian tech entrepreneurship, and inspire similar moves in other strategic digital sectors
Source: Economic Times
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