India’s Open Commerce Network Expands into Digital Lending

• India’s Open Network for Digital Commerce (ONDC) has grown to 12 million monthly transactions since its 2022 launch, now expanding into digital lending.
• ONDC introduced APIs for unsecured loans, promising six-minute transactions, a significant efficiency boost over traditional loans.
• Nine lending service providers and lenders, including EasyPay and Tata Digital, have joined the network, with more fintech players and banks to follow.
• The network uses government-backed services like Aadhaar for KYC and eSign for loan disbursement, aiming to limit bad debts.
• Future plans include GST invoice financing, purchase financing, and working capital lines, with insurance and investments also on the horizon.

Source: Techcrunch