GR Exclusive: Ready To Drive The Next Wave in Digital Payments: NPST CEO, Deepak Chand Thakur

In India's digital revolution, NPST is a company in the realm of PayTech. From its modest beginnings in 2013 to becoming a cornerstone in India's financial technology ecosystem, NPST has charted an impressive growth trajectory. In a recent interaction with Deepak Chand Thakur, CEO & Co-founder of NPST, we delved deeper into the company's journey, strategies, and its impact on the digital payments landscape.

From Inception to Innovation

NPST, short for Network People Services Technologies Limited, started with a clear mission: to revolutionize digital payments across India's diverse financial landscape. Thakur reminisces, "Our journey began with a focus on leveraging technology to simplify financial transactions. We saw an opportunity to integrate digital payments seamlessly into everyday life."

The company's early breakthrough came with the strategic acquisition of Serve Seva Kendras, a move that positioned NPST at the forefront of the Aadhaar registration process. This initiative, part of the larger India Stack initiatives, laid a robust foundation for NPST's future growth. "Transforming these Kendras into profitable ventures was pivotal," Thakur explains. "It not only bolstered our operational capabilities but also aligned us with national priorities for financial inclusion."

Key Milestones and Strategic Partnerships

Reflecting on NPST's journey, Thakur highlights their partnership with Canara Bank as a pivotal moment. "Starting from a small project, our collaboration evolved to encompass managing Canara Bank's entire digital banking and UPI payments ecosystem," he notes. This partnership was instrumental in launching the Banking Super App and integrating Aadhaar with UPI, setting new benchmarks in digital banking solutions.

In 2019, NPST expanded its footprint with the launch of Evok PPaaS (Payments Platform-as-a-Service), targeting the B2B2C space. "Evok PPaaS bridges the gap between banks and FinTechs, empowering them to deliver innovative payment solutions," Thakur explains.

A defining aspect of NPST's success lies in its ability to handle massive transaction volumes. With monthly processing exceeding 2 billion transactions, NPST plays a crucial role in India's digital payments infrastructure. Thakur elaborates, "Maintaining high transaction volumes requires a robust infrastructure. We employ active-active automated failover systems and advanced fraud management solutions to ensure reliability and security."

Moreover, NPST introduced pioneering solutions like Online Dispute Resolution (ODR), aimed at enhancing user experience and trust. "ODR simplifies dispute management across all transactional channels," Thakur emphasizes. "It reduces resolution times significantly, aligning with regulatory directives and improving customer satisfaction."

NPST's impact extends beyond large institutions to empower merchants across India. "Our QR Code and Soundbox solutions cater to the unique needs of India's diverse merchant landscape," Thakur points out. "These solutions facilitate seamless, low-cost transactions, driving financial inclusion and empowering local businesses."

Operationally, NPST collaborates closely with acquirers-banks and payment aggregators-to manage the entire lifecycle of merchant transactions. "We provide comprehensive services from merchant screening and onboarding to device shipment and transaction processing," Thakur explains. "This end-to-end support enables acquirers to focus on expanding their merchant base and delivering superior services."

Business Models and Strategic Growth

Discussing NPST's business models, Thakur elaborates on their role in facilitating the monetization of UPI transactions. "The demand for real-time payments is growing rapidly," he states. "We empower banks and FinTechs to capitalize on this trend through connected banking solutions and Payments Platform-as-a-Service (PaaS)."

"Through PaaS, we streamline post-transaction services like dispute resolution and reconciliation," Thakur continues. "This not only reduces operational costs for acquirers by up to 30% but also enhances their agility in the competitive payments landscape."

Vision for Financial Inclusion and Future Innovations

Looking ahead, NPST remains committed to driving financial inclusion through technological innovation. "We envision a future where every Indian has access to digital financial services," Mr. Thakur states passionately. "Our focus is on developing AI-ML-based fraud management systems, exploring new use cases like cross-border payments, and collaborating with regulators and fintech companies to deepen financial access."

Impact on the Digital Payments Landscape

NPST's impact on India's digital payments landscape is palpable. With a consolidated FY 2024 revenue surge of 216% to Rs 130.08 crore and a net profit increase of 310% to Rs 26.71 crore, the company's market capitalization stands at Rs 3,000 crore.

"UPI has evolved from a payment rail to an interconnected ecosystem supporting diverse financial products," Thakur explains. "We are proud to have played a pivotal role in this evolution, driving adoption and innovation."

As India embraces a digital-first future, NPST stands ready to drive the next wave of growth in digital payments, making financial inclusion a reality for millions across the country.

"Our journey is about transforming possibilities into realities," Thakur concludes. "With a dedicated team and a clear vision, NPST is poised to shape the future of digital payments in India."