India’s digital payments ecosystem has transformed at breakneck speed. From UPI’s record-breaking ₹24.03 lakh crore in transactions in a single month to the rapid adoption of cross-border capabilities, the country has become a global benchmark for scale, speed, and inclusivity. But for Mathew Thomas, CTO at airpay Payment Services, the next chapter in this journey is not just about access—it is about experience.
“The next growth stage will have to address more than just access—it should improve on experience,” Thomas stresses. “Payments need to be dependable, intuitive, and frictionless—whether for a first-time user on a cellphone in a tier-3 town or a corporate in Mumbai.”
From scale to experience
India’s open digital public infrastructure has proven its ability to handle hundreds of millions of users seamlessly. But Thomas believes the future lies in making the system smarter, faster, and more trustworthy—ensuring that backend complexity doesn’t compromise user experience.
“When ₹24.03 lakh crore of transactions are being processed in a month, then a batch-oriented approach will not be able to keep pace,” he explains. “Backend infrastructure must be real-time, elastic, and intelligent: able to scale out quickly during peak periods and never sacrifice speed, reliability, or security. The real innovation will be in hiding this complexity from the user.”
In other words, whether it’s an individual paying a small merchant or a corporate settling millions, the process must feel smooth, instantaneous, and reliable.
Why patchwork no longer works
Many platforms today rely on patchwork solutions, managing 10–15 payment partners just to meet compliance and reconciliation requirements. But Thomas warns this approach is unsustainable.
“Every new payment partner adds another layer of complexity—like tying one more knot in an already tangled rope,” he says. “Patchwork integrations might solve immediate requirements but only increase challenges around reconciliations, compliance, and costs.”
Instead, Thomas advocates for re-architecting the backend into a unified, modular framework.
“A consolidated control layer applies security, compliance, and analytics uniformly across the ecosystem. This eliminates duplication and builds resilience to handle new payment rails, regulations, or fraud patterns without disturbing the core. Such a foundation scales with agility and frees platforms to innovate on user experience, rather than firefighting integration issues,” he explains.
AI: The silent guardian
Fraud prevention has traditionally added friction to payment flows, with OTP layers, manual reviews, and verification steps frustrating users. At airpay, AI flips this equation by detecting fraud invisibly and in real time.
“Fraud prevention occurs secretly in real time—the good kind of frictionlessness,” Thomas says. “Our machine learning models analyse transaction patterns, device fingerprints, velocity, and geolocation data within milliseconds. They don’t just look at one transaction but learn from millions of data points.”
For example, if a card usually used in Delhi suddenly makes large transactions in another city, the system flags it instantly. During festive seasons, when volumes spike, AI dynamically adjusts thresholds—ensuring genuine customers get near-instant approvals while suspicious ones are blocked.
The impact is tangible: faster processing, higher approval rates, and fewer fraud-related chargebacks.
Interoperability at the core
As payments increasingly span banks, NBFCs, wallets, and regulators, interoperability becomes critical. airpay addresses this through an API-first architecture aligned with global standards like ISO 20022.
“This ensures that every link—whether with a bank, wallet provider, or regulator—is smooth, consistent, and future-ready,” Thomas says. “Security is enhanced further through tokenisation, allowing sensitive information to travel safely without exposing actual details.”
For users, interoperability translates into freedom—the ability to choose financial products without worrying about which rail or platform is behind it. For partners, it reduces integration costs, accelerates onboarding, and embeds compliance by design.
Lessons for the world
India’s infrastructure-led approach to financial inclusion is being closely watched worldwide. Thomas believes the model offers clear lessons.
“India’s experience proves that financial systems can truly achieve infinite scale and deep inclusion if built on the right foundations,” he asserts. “The biggest lesson is that infrastructure comes first. Open, secure, interoperable rails create the stage for innovation.”
Equally vital is the collaboration between regulators, banks, and technology providers—a partnership that has extended digital finance to millions while maintaining trust. And then comes the “last-mile” lens: making systems not just cheap for corporates but also simple enough for first-time users in remote towns.
“For the world, the solution is laid out: build infrastructure that is open by design, embed security and transparency at every layer, and keep user needs at the center. That’s how ecosystems become resilient, inclusive, and adaptable,” he points out.
Trust as the ultimate currency
For Mathew Thomas, the future of payments lies in creating a backbone that is invisible to the user but rock-solid beneath the surface. By re-architecting systems, embedding AI, and championing open standards, airpay is pushing India’s payments industry toward a future where trust and simplicity define the experience.
“Ultimately, what matters most is trust, security, and a seamless payment experience at scale,” he concludes.