PIDF and last mile acceptance – What are the opportunities and how can they be engaged | Podcast

This episode explores the Payment Infrastructure Development Fund (PIDF), a groundbreaking initiative driving digital payment acceptance across India, particularly in underserved areas. Sunil Rangala (Senior Vice President of Strategy and Innovation at Worldline India) joins the discussion to dissect the scheme's impact and future potential.

Launched in 2021 by the Reserve Bank of India (RBI) in collaboration with banks, the PIDF scheme aims to bridge the digital payment infrastructure gap. Initially targeting 3 million new payment acceptance points annually for three years, the scheme's remarkable success led to a well-deserved extension till December 2025.

The results are impressive. Sunil states that by the end of 2023, the scheme funded over 8.27 lakh Point-of-Sale (POS) devices and a staggering 2.71 crore QR codes, surpassing initial targets significantly. This growth is noteworthy because the PIDF focuses on neglected areas – tier-2 to tier-6 cities, towns, and regions like Northeast India, Jammu & Kashmir, and Ladakh. These regions, often overlooked by traditional financial institutions, are now experiencing a surge in digital payment options.

While acknowledging challenges such as low digital literacy and inconsistent connectivity in some areas, Sunil emphasises the vast opportunities the PIDF presents. The extension and increased subsidy (from 75% to 90% of deployment costs) make it attractive for companies like Worldline to expand their reach. This not only benefits companies through recurring transaction revenue but also fosters financial inclusion by bringing digital payments to new demographics. Imagine small businesses in remote villages accepting digital payments – the PIDF scheme is making this a reality.

The episode also dives into how the RBI oversees the ₹1,026 crore corpus funded by contributions from card schemes, issuing banks, and acquirers. Strict guidelines and audits ensure transparency and prevent misuse of funds, fostering trust in the scheme's effectiveness.

Looking ahead, Sunil shares the exciting addition of sound boxes to the PIDF scheme. These devices will further enhance digital payment accessibility in remote areas with limited internet connectivity. He concludes by underlining the scheme’s positive impact on India's digital payment ecosystem. The scheme is paving the way for a more inclusive financial landscape where everyone, regardless of location, can participate in the digital economy.

Stay tuned for the next episode. You can reach us at marketing.worldlineindia@worldline.com to share your feedback.