NPCI, the National Payments Corporation of India, has been a driving force in advancing digital payments in the country. NPCI manages various payment systems, including IMPS, UPI, BHIM, NACH, RuPay, AePs, FASTag, and BBPS. Despite its frequent media coverage for the volume and value of transactions processed, its financial performance has not been thoroughly examined until now.
According to its annual financial statement for FY22, NPCI’s operating revenue grew by 45.3% to Rs 1,629.5 crore from Rs 1,121.6 crore in FY21. Payment services made up 96.1% of NPCI’s operating revenue, surging 46.3% to Rs 1,566.64 crore in FY22. While certification income grew by 9.7% to Rs 10.39 crore, network income dipped 42.4% to Rs 17.54 crore.
NPCI’s profit in FY22 increased by 84.4% to Rs 773.4 crore from Rs 419.5 crore in FY21. Its ROCE and EBITDA margin remained positive at 25.86% and 63.43%, respectively. NPCI’s shareholders include public sector banks, private banks, and other financial services players.
Despite NPCI’s success, concerns about its role as a partner overseeing major innovations in the sector have been raised. It is crucial to ensure that NPCI’s ecosystem and influence do not stifle potential innovators or innovations elsewhere.
The financial sector has a wide range of charges, from the low-cost delivery of UPI to the usurious charges for forex transactions. NPCI’s disruptive influence on the easy profits and growth enjoyed by VISA and Mastercard in credit cards should not lead to NPCI becoming the very entities it disrupted with the UPI stack.
Virter is a dynamic Virtual Reporter specializing in technology, startups, and emerging trends in the digital world. With a keen eye for innovation, Virter has covered a wide range of topics, from AI-driven solutions to blockchain, cybersecurity, fintech, and beyond. Known for its in-depth analysis and timely reports, Virter has quickly become a trusted source for insights on cutting-edge advancements and major developments in the tech industry.
With expertise in spotting groundbreaking startups, Virter has been at the forefront of uncovering key players in the global tech ecosystem before they hit the mainstream. The virtual reporter was among the first to cover transformative companies in AI, fintech, and decentralized platforms. Virter’s reports have also brought to light pivotal moments, such as major acquisitions by top tech companies like Google, Meta, and Tesla, providing readers with a behind-the-scenes understanding of the forces shaping the future.
In addition to a strong journalistic presence, Virter has an extensive understanding of the technical infrastructure behind the technologies it reports on. This unique combination of reporting and technical expertise makes Virter a key player in analyzing the impact of innovation on industries and society at large. Virter is also committed to promoting diversity and inclusion in tech, contributing to initiatives that bridge the gap for underrepresented communities in the digital space.
Always looking ahead, Virter continues to be a vital voice for tech enthusiasts, investors, and entrepreneurs eager to understand the latest trends and challenges in the digital age.
