Fintech founder Richika Dadheech says the upcoming Budget 2026 could shape the future of India’s digital payments by keeping costs low, encouraging innovation, and using AI to improve security.
What fintech hopes to see in Budget 2026
Industry leaders want the government to keep policies flexible around data protection, compliance and new technology. They also want zero merchant discount rate (MDR) to stay, which has helped small shops adopt UPI quickly. A different pricing model for very high‑volume transactions could fund better security and long‑term upgrades while still being affordable for everyone.
Why digital payments are taking off in India
More people are trusting digital money because it is fast, safe and convenient. UPI’s simple, low‑cost system works on any smartphone, and multilingual apps make it easy for users across the country. QR codes, payment gateways and quick merchant onboarding have removed many hurdles for small businesses.
- Faster settlement of money
- Clearer cash‑flow visibility for merchants
- Less reliance on cash handling
Today, digital payments are expected in everyday places – from local grocery stores to buses, schools and clinics.
Building stronger cybersecurity and fraud protection
With billions of transactions, security can’t be an afterthought. Companies are investing in real‑time fraud monitoring, layered authentication and resilient system design that keeps services running even during traffic spikes.
- AI‑driven behavioural analytics spot unusual activity early
- Redundant servers and fail‑over plans reduce downtime
- Regular user education helps prevent simple scams
How AI is changing fintech
AI works mostly behind the scenes, making systems faster and more reliable. It powers real‑time fraud detection, predicts system issues before they happen, and routes transactions efficiently. For users, AI can simplify steps, personalize offers and cut friction, but human oversight remains essential for trust.
Current challenges fintech faces
Even as digital payments spread to smaller towns, merchants still need quick, human help when something goes wrong, like a QR code not scanning. Maintaining low costs while handling huge transaction volumes also demands constant investment in technology, security and support.
Regulators play a key role by providing clear, consistent rules that let innovation grow safely. As AI becomes a core part of fintech, transparency, data privacy and fairness must stay top priorities.
Remember, this is just an overview, not a prediction. Do your own research or talk to a certified advisor before making any financial decisions.